Which of the following is NOT a pricing tactic aimed at consumers in competitive markets?

• A. Predatory pricing
• B. Loss leader pricing
• C. Collusive price fixing
• D. Price discrimination

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the context of the question, which asks to identify a pricing tactic that is NOT aimed at consumers in competitive markets. This means we need to distinguish between tactics used to influence consumer behavior and those that involve other market dynamics.
2. Step 2: Define each option briefly: Predatory pricing is when a firm sets very low prices to drive competitors out of the market; Loss leader pricing involves selling a product at a loss to attract customers to buy other products; Price discrimination means charging different prices to different consumers based on willingness to pay.
3. Step 3: Recognize that Collusive price fixing is an agreement among firms to set prices at a certain level, which is aimed at controlling the market rather than directly targeting consumers with pricing tactics.
4. Step 4: Analyze that while predatory pricing, loss leader pricing, and price discrimination are strategies designed to influence consumer purchasing decisions, collusive price fixing is a strategy between firms to reduce competition.
5. Step 5: Conclude that the tactic NOT aimed at consumers in competitive markets is collusive price fixing, as it is a firm-to-firm agreement rather than a consumer-targeted pricing strategy.