When Microsoft Introduced Its Zune MP3 Player,many People Thought It

question 22

Multiple Choice

When Microsoft introduced its Zune MP3 player,many people thought it would capture the MP3 player market by pricing its product so low that a smaller competitor,like the Apple iPod,would be unable to compete.If Microsoft had used this approach it have been would be guilty of _____.

• A) predatory pricing
• B) unfair trade practices
• C) channel manipulation pricing
• D) price fixing
• E) price discrimination

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Definitions:

Discount Rate

An interest rate charged to commercial banks and other depository institutions for loans received from a country's central bank's discount window.

Multiple Discounts

A series of discounts applied one after the other on the remaining amount after the previous discount has been deducted.

Discount Period

The time period within which a payment on an invoice qualifies for a prompt payment discount.

Outstanding Balance

The outstanding balance is the total amount still owed on a loan or credit line, including any interest or fees that have accrued.