Mark Johnson, the Manager of a Discount Consumer Electronics Store

question 47

Multiple Choice

Mark Johnson, the manager of a discount consumer electronics store, has been approached by the manufacturer of a popular and profitable line of compact disk storage racks regarding the retail price charged for the racks at Johnson's store. The manufacturer's representative has implied that if Johnson doesn't raise the retail prices for the storage racks to those charged by the manufacturer's non-discount customers, Johnson's supply of racks may be severely curtailed. The manufacturer is guilty of attempting:

• A)horizontal price fixing.
• B)predatory pricing.
• C)price discrimination.
• D)resale price maintenance.

---

Definitions:

Rate of Return

The gain or loss made on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Stream of Benefits

A sequence of potential advantages or profits that may be gained from an investment over time.

Compounded Quarterly

An interest calculation method where the interest is added to the principal amount four times a year, leading to interest earned on previously earned interest.

Certificates of Deposit

Financial products offered by banks that provide a fixed interest rate in exchange for keeping a deposit untouched for a predetermined period.