Gorhan Construction,Brighton Bros

question 38

Multiple Choice

Gorhan Construction,Brighton Bros. ,and Tirenn Construction agreed that on three upcoming projects,Gorhan would bid lowest on one,Brighton would submit the lowest bid on the second project,and Tirenn would submit the lowest bid on the third project.In this way,they would each be assured of work for the upcoming season.This behavior

• A)is legal and acceptable practice in the construction industry to spread work more evenly.
• B)is a per se violation of the Sherman Act.
• C)is a rule of reason violation of the Sherman Act.
• D)violates ethical,but not legal,standards.

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Definitions:

Yield Management Systems

Systems used by companies, especially in the hospitality and airline industries, to adjust prices and availability of products or services in response to market demand, maximizing revenue.

Capacity Utilization

Refers to the percentage of total production capacity that is actually being used by a company over a specific period.

Mass Customization

A marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Market Segmentation

The process of dividing a heterogeneous market into smaller, more homogeneous groups of customers with similar needs, characteristics, or behaviors.