A Certain Piece of Machinery Was Purchased 2 Year(s) Ago

question 225

Multiple Choice

A certain piece of machinery was purchased 2 year(s) ago by Garland Mills for $500,000. Its present resale value is $320,000. Assuming that the machine's resale value decreases exponentially, what will it be 2 year(s) from now? ​

• A) The resale value of the machinery will be $204,800
• B) The resale value of the machinery will be $205,911
• C) The resale value of the machinery will be $204,789
• D) The resale value of the machinery will be $204,911

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Definitions:

Price Discrimination

The practice of selling the same product to different customers at different prices, typically based on factors like quantity purchased, customer demographic, or market location.

Robinson-Patman Act

A United States federal law aimed at preventing anticompetitive practices by producers, specifically prohibiting price discrimination among different purchasers of the same product, when the effect may harm competition.

Predatory Pricing

A strategy where a business sells products or services at a loss or extremely low prices to eliminate competition and gain market share.

Clayton Act

A piece of antitrust legislation in the United States, passed in 1914, aimed at promoting competition among businesses by prohibiting certain practices that restrict competition.