When Firms Have Had to Defend Themselves Against the Charge

question 36

Multiple Choice

When firms have had to defend themselves against the charge that they have adopted unjustifiably low prices either to drive a competitor out of business or to prevent the entry of a rival, they have been accused of

• A)creating a trust.
• B)conspiracy.
• C)predatory pricing.
• D)price discrimination.

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Definitions:

Unlike Charges

Opposite electric charges (positive and negative), which attract each other according to Coulomb's law.

Attraction

The force that causes one object to pull another object to itself.

Repulsion

The force that causes one object to push another object away from itself.

Smallest Part

The component or piece within a system or mechanism that is the least in size, volume, or quantity.