A food company trying to increase its profits by expanding in to the soft drinks business is an example of

A company which charges a lower price than may be indicated by economic analysis to gain a foothold in the market is practicing

A) price skimming. B) psychological pricing. C) penetration pricing. D) prestige pricing.

The ability to produce a good at lower opportunity costs than another producer is known as

A) comparative advantage. B) marginal cost production. C) economies of scale. D) absolute advantage.