If a Large Retailer Sold Numerous Items Below Cost with the Intention

question 132

Multiple Choice

If a large retailer sold numerous items below cost with the intention of punishing small competitors and gaining higher long-run profits by putting those competitors out of business, the retailer would be guilty of ________.

• A) price collusion
• B) price fixing
• C) predatory pricing
• D) competitive pricing
• E) penetration pricing

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Definitions:

Mandamus

A judicial remedy in the form of an order from a court to a government official, body, or lower court, requiring them to perform a mandatory or purely ministerial duty correctly.

Natural Justice

The principle of fairness in legal processes, ensuring all parties have a fair chance to present their case.

Privative Clauses

Provisions in law that limit the ability of a court to review decisions made by administrative bodies, aiming to reduce judicial interference.

Fair Hearing

A judicial or administrative procedure that ensures an individual's rights are respected by giving them a chance to present their case and to hear and respond to any evidence against them.