The Owner of BargainSmartphones

question 9

Multiple Choice

The owner of BargainSmartphones.com is determined to drive competitors such as CheapPhones.com out of business. He has plenty of money to invest in building his business, so he has instructed his marketing manager to slash prices by 25% to 50% on nearly every product until there aren't any other online cell phone retailers left. Which of the following statements is true about this situation?

• A) This business owner is probably guilty of tax evasion.
• B) This business owner could be using illegal loss-leader pricing tactics.
• C) This business owner is most likely guilty of price discrimination.
• D) This business owner is probably violating the Robinson-Patman Act.

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Definitions:

Months

Units of time in calendars that approximate the natural period related to the motion of the moon; divisions of the year.

Dada

An art movement of the European avant-garde in the early 20th century, characterized by its mockery of materialistic and nationalistic attitudes.

Child-Directed Speech

A simplified and exaggerated form of language used by adults when communicating with young children, characterized by a higher pitch and slower tempo.

High-Pitched Voice

A vocal tone characterized by higher frequencies, typically associated with smaller vocal cords or heightened emotions.