Predatory pricing Study guides, Class notes & Summaries

MARK 3321 3.06 & 3.07 Questions and Answers 100% Pass Which is the advantage to a business of using bar-code pricing? Easier to change prices Which pricing tactic might be considered questionable by some businesses? Developing a complex pricing structure What would be the most appropriate pricing strategy for a business in a small town where unemployment has skyrocketed and the economy is in a downturn? Flexible pricing Why do some new companies set their selling prices as low a...

Price the value paid for a product in a marketing exchange. Price is often the only thing a marketer can change quickly to respond to changes in demand, the actions of competitors, or the marketing environment. Value a customer's subjective assessment of benefits relative to costs in determining the worth of a product Factors influencing the assessment of value time constraints, price levels, perceived quality, and motivations to use available information about prices ba...

Firm : An organisation that brings together factors of production in order to produce output. Reasons Firms Grow : 1. Increase market share. 2. Increase economies of scale. 3. Gain power. Reasons Firms Remain Small : 1. Legal barriers. 2. Overt barriers 3. High sunk costs. 4. Niche-market business. 5. Lack of expertise. 6. Optimum efficiency achieved. Barriers to Entry 2 : Obstacles that ensure the continued existence of monopoly power of firms in a market. Predatory Pricing : P...

Firm : An organisation that brings together factors of production in order to produce output. Reasons Firms Grow : 1. Increase market share. 2. Increase economies of scale. 3. Gain power. Reasons Firms Remain Small : 1. Legal barriers. 2. Overt barriers 3. High sunk costs. 4. Niche-market business. 5. Lack of expertise. 6. Optimum efficiency achieved. Barriers to Entry 2 : Obstacles that ensure the continued existence of monopoly power of firms in a market. Predatory Pricing : P...

price elasticity of demand - a measure of the sensitivity of demand to changes in price Competitive Pricing - When the product is priced in line with or just below competitors' prices to try to capture more of the market. Cost Plus Pricing - adding a percentage (the mark-up) to the costs of producing a product to get the price. Mark-Up - The percentage added to unit cost that makes a profit for a business when setting the price Penetration Pricing - setting a low init...

Beyond the enforcement of antitrust laws, collusion often fails because: a. collusion is inherently wrong and unethical. b. colluding parties refuse to accept lower profits. c. it has incentive problems associated with the "prisoners' dilemma." d. colluding parties do not like each other. - -it has incentive problems associated with the "prisoners' dilemma." Which of the following are example(s) of explicit collusion? a. Signaling to competitors to reduce output. b. Directly negoti...

WGU D077 - Cohort 1 Latest Update Product Concept - * Understanding product dynamics to: -- Showcase the best qualities -- Maximum product features Sales Concept - * Seller's need to convert their product into cash Production Concept - * Consumers will favor products that are available and highly affordable * Organization should focus on improving production and distribution efficiency Marketing Concept - * Firms should analyze customer needs * Make decisions t...

How do you set a price? -establish pricing goals -estimate demand, costs, and profits -choose a price strategy to help determine a base price -fine tune the base price w/pricing tactics Define price strategy. the initial price and gives direction for price movements over the product's life cycle Define price skimming. firm charging a high introductory price, w/heavy promotion; later decrease price (above the market) When does price skimming best function? -when there...

GBA Exam 2 Questions & Answers 2024 Which of the following occurs when managers in an oligopoly market agree in advance which company will submit a winning proposal for a product or service being offered to a buyer? a. Exclusive dealing arrangements b. Predatory pricing c. Retail maintenance agreements d. Bid rigging - ANSWER-d. Bid rigging Which of the following models results in just outcomes, respects moral rights, and satisfies utilitarianism? a. Pure monopoly b. Equilibriu...

WGU; C200; Global Economics; Chapter 11. Exam Questions and answers, 100% Accurate. VERIFIED. Beyond the enforcement of antitrust laws, collusion often fails because: a. collusion is inherently wrong and unethical. b. colluding parties refuse to accept lower profits. c. it has incentive problems associated with the "prisoners' dilemma." d. colluding parties do not like each other. - -it has incentive problems associated with the "prisoners' dilemma." Which of the following a...