Acme Computer Co

question 395

Multiple Choice

Acme Computer Co. sells computers to retail stores for $400. If Acme requires the retailers to charge customers $500 for the computers, then it is engaging in

• A)resale price maintenance.
• B)predatory pricing.
• C)tying.
• D)monopolistic competition.

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Definitions:

Import Quotas

Limits set by a government on the amount or value of certain goods that can be imported into a country, usually to protect domestic industries.

Voluntary Export Restraints

These are self-imposed limits by exporting countries on the volume of their exports to a particular country, usually to avoid stricter trade barriers.

Administers

The act of managing, directing, or overseeing individuals or processes.

Tariff

A tax imposed on imported goods and services to control trade volumes, protect domestic industries, or generate revenue.