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How does predatory pricing hurt competition?
Predatory Pricing hurts the competition because for smaller business places because a company like Walmart would buy something e.g. tires and they would buy the tires for 50 bucks and sell them for 40 so they're losing money but then for lets say a tire store who sells them for 60-65 dollars, nobody's going to go to their store and they're going to go out of business, afterwards Walmart raises their prices to 70 or more as they started a monopoly in that area.Predatory pricing hurts competition by forcing its competitors to drop out of the market, and prevents new competitors from going into the market. But the predator loses money each time it drives an endless series of rivals out of business.
What do you mean by transfer pricing?
transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,
What is conversion cost pricing?
Pricing is based on direct labor and overhead. Materials does not affect pricing. Example: Your customer provides materials used in production.
What is contribution margin pricing?
Contribution margin pricing means to follow the contribution margin costing process to allocate price to units or production units.
Why is penetration pricing more likely than skim pricing to raise a company's or a business unit's operating profit in the long run?
The penetration pricing is more likely to raise the business unit's operating profit in the long run because it does not spend heavily on promotion.
What is perdatory pricing?
Predatory means "in the manner of a predator." Predatory pricing is designed to drive competitors out of business by pricing so low that the competition can't compete.
Do economists all agree that predatory pricing exists and is a common practice?
False, economists do not all agree that predatory pricing exists and is a common practice.
What does predatory pricing mean?
The pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market
What are the advantages and disadvantages of Predatory Pricing?
The pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market.
What are the different pricing methods in international marketing?
Bid Pricing Cost Plus Pricing Customary Pricing Differential Pricing Diversionary Pricing Dumping Pricing Experience Curve Pricing Loss Leader Pricing Market Pricing Predatory Pricing Prestige Pricing Professional Pricing Promotional Pricing Single Price for all Special Event Pricing Target Pricing
Who is the government attempting to help by discouraging predatory pricing?
Ultimately, the government is trying to protect the consumer. Predatory pricing is used to drive a competitor out of a market, or keep a potential competitor from entering a market. If successful, the entity employing predatory pricing tactics can maintain a monopoly (or near monopoly) in a market and use the lack of competition to set prices anywhere it wants. The consumer, having no choice in a marketplace, is forced to pay whatever the entity chooses to charge.
The market price may be an inappropriate transfer price if?
competitor s are practicing predatory pricing to eliminate competitor
What did the government claim Microsoft did to illegally extend it control over the market?
It had used predatory pricing to drive competitors out of business
What did the government claim Microsoft to illegally extend its control over the market?
It had used predatory pricing to drive competitors out of business
What did the government claim Microsoft did to illegally extend its control over the market?
It had used predatory pricing to drive competitors out of business
Difference and similarities between penetration pricing and predatory pricing?
Similarity is that both tend to push the price levels `lower' Difference is in the `objective' or `orientation' or `thought' behind the pricing strategy Penetration Pricing is when the price is pegged at a rate that very price-sensitive segments find acceptable. e.g. Nokia 1100 when introduced in Indian markets. The objective is to open up newer market segments Predatory Pricing is when prices are set lower than average selling prices of industry and competitors. Objective is to put pressure on competitors and price them out of the market
What are the Factors involve in pricing general and special attendance on sub contractor in tendering and estimating?
Discuss factors in pricing general and special attendance on subcontractors?
