To Prevent Its Competitors from Obtaining Sufficient Supplies to Make

question 20

Multiple Choice

To prevent its competitors from obtaining sufficient supplies to make their products, Molded Plastics, Inc., uses its market power to increase the prices of those supplies (inputs which Molded Plastics also uses) . This is

• A) a refusal to deal.
• B) business acumen.
• C) predatory bidding.
• D) predatory pricing.

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Definitions:

Niche Market

A specific, focused segment of the market aimed at meeting the particular needs of a certain group of customers.

Restructuring Finances

The process of reorganizing a company’s financial affairs, often in response to financial crisis, to ensure sustainability.

Retirement Plans

Financial strategies that individuals use to allocate savings and investments for the period of life after they stop working.

Financial Viability

The ability of a business to generate sufficient revenue to cover its expenses and continue operations over the long term.