Bob Biltmore Owns Dozens of Very Successful Print Shops Throughout

question 126

Multiple Choice

Bob Biltmore owns dozens of very successful print shops throughout the Prairie Provinces. Biltmore's shops specialize in low-cost black and white copies and feature user-friendly machines consumers can easily operate. In recent months, Biltmore has noticed many more competitors in the areas where his stores are located. In an attempt to eliminate the competition, Biltmore has decided to charge a very low price for his black and white copies, a price so low his competitors will be forced out of business. After the competition has been driven out, Biltmore plans to raise the price of his copies. Biltmore is planning to engage in the illegal practice of:

• A)price inflation.
• B)competitive pricing.
• C)predatory pricing.
• D)price fixing.

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Definitions:

Tax Credit

A direct reduction of the tax liability, not merely a reduction of taxable income.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production inputs, which vary with the level of output.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the amount of goods or services produced, such as rent or salaries.

Selling Price

The amount of money for which something is sold to a customer.