Kimo Runs a Chain of Health- Food Supermarkets in Victoria

question 42

Multiple Choice

Kimo runs a chain of health- food supermarkets in Victoria, British Columbia. His stores offer a number of products that other major grocery retailers have not stocked in the past, meaning that Kimo has enjoyed a loyal and steadily growing clientele. Recently, however, he has noticed that the major grocery retailer in Victoria, Global Foods, is offering several of his products, such as dried rice snacks, organic herbs, and shiatsu oils, at cut- rate prices that he cannot possibly match without losing money. Kimo suspects that Global is selling these items below their cost in order to drive him out of business. What kind of anti- competitive behaviour might Global be engaged in?

• A) the criminal offence of bid- rigging.
• B) the reviewable practice of price maintenance.
• C) the criminal offence of misleading advertising.
• D) the reviewable practice of abuse of dominance.
• E) the criminal offence of conspiring to reduce competition.

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Definitions:

Machine Hours

The total operating time of machinery used in the production process during a specific period.

High-low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Fixed Cost

Expenses that do not change regardless of the production volume, including rent, salaries, and insurance premiums.

Machine Hours

A measure of the amount of time a machine is operated, used in costing and operational efficiency calculations.