A Pricing Strategy Below Cost Is Often Claimed to Be

question 9

Multiple Choice

A pricing strategy below cost is often claimed to be ________, done to drive rivals out of business so that the firm can subsequently raise its price back up to the monopoly level.

• A)predatory
• B)fair
• C)ethical
• D)None of the above is correct.

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Definitions:

Limit Order

Order that puts a ceiling or floor on a security purchase or sale.

Check Clearing

The process of transferring funds from the check writer's account to the recipient's account.

Insider Trading

Use of material nonpublic information about a company to make investment profits.

Sensitive Information

Data that must be protected due to its confidential nature, such as personal identification or financial details.