​It Is Illegal for a Business to Price Discriminate When

question 7

Multiple Choice

​It is illegal for a business to price discriminate when selling goods to other businesses unless
Both A & B are true

• A)​Price discounts are cost-justified
• B)Discounts are offered to meet competitors' price
• C)Either A or B is true

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Definitions:

Comparative Advantage

An economic principle that suggests countries or entities should specialize in producing goods in which they have a lower opportunity cost, leading to more efficient global production and trade.

International Trade

The exchange of goods, services, and capital across international borders, influenced by agreements, tariffs, and global market dynamics.

Social Dumping

The practice of employers or countries exploiting cheaper labor or lower environmental standards in one region over another, often leading to job loss and lowered labor conditions in higher-cost areas.

Fair Trade

An ethical trading approach that aims to achieve better trading conditions and promote sustainability for producers and workers in developing countries.