When Managers Take Advantage of an Unusual Event by Charging

question 91

Multiple Choice

When managers take advantage of an unusual event by charging prices that consumers believe are too high, they are practicing:

• A) Predatory pricing
• B) Price gouging
• C) Cost-based pricing
• D) Illegal pricing

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Definitions:

Quasi-contract

An obligation imposed by law to prevent unjust enrichment, even in the absence of a formal contract.

Economic Harm

Refers to financial loss or damage suffered by a person or entity, often as a result of wrongful actions of another.

Implied-in-fact Condition

A legal term for a provision that, although not expressly stated, is presumed to be a part of an agreement based on the actions or circumstances of the parties.

Transaction

The act of conducting business or completing an exchange of goods, services, or funds between two or more parties.