Multiple choice

Which strategy is also known as pattern pricing?

  1. Price lining

  2. Price discrimination

  3. Follow the leader pricing

  4. Keep out pricing
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An industry is a group of firms. One of them controls the large share of the market that change in its supply will effect the market price. Such a dominant firm acts as a price leader and the other firms have to follow the pattern of price set up by the leader. So follow the leader pricing is also known as pattern pricing.

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