Predatory Pricing Refers to

question 334

Multiple Choice

Predatory pricing refers to

• A)the practice of charging a very low price for a product with the intent of driving competitors out of business.
• B)a conspiracy among firms to set prices for a product.
• C)using price differentials when charging different prices on the basis of race, religion, or ethnic affiliation.
• D)using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications.
• E)controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price.

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Definitions:

Sales Invoice

A document issued by a seller to a buyer that lists products or services sold, including quantities and prices.

Accounts Receivable

Accounts receivable from customers for delivered goods or services awaiting payment.

Credit Customer

A customer who purchases goods or services on credit, agreeing to pay the seller at a later date.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.