Which of the Following Is a Selling Decision That May

question 73

Multiple Choice

Which of the following is a selling decision that may be called into question under the law?

• A) predatory pricing
• B) product warranty
• C) bait-and-switch advertising
• D) promotional allowances and services
• E) disclosure of customer rights

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Definitions:

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit; essentially, the cost of producing one more unit of a good.

Product-Variety Externality

An economic effect where an individual's consumption choices can lead to an increase in the variety of products available, potentially benefiting other consumers.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with production or consumption activities.