A competition-based pricing strategy called ________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.
A) skimming
B) penetration
C) target costing
D) price leadership

Question

Quizplus · Accepted Answer

Price leadership involves a dominant firm setting a price that other competitors in the industry follow, which can lead to a stable market price and reduce price competition. The other options, skimming, penetration, and target costing, do not involve one dominant firm setting the pricing practices for their competitors.

A Competition-Based Pricing Strategy Called ________ Involves One or More