A Pricing Scheme Under Which a Firm Decreases Its Price

question 23

Multiple Choice

A pricing scheme under which a firm decreases its price in order to drive its rival out of business is known as

• A) tie-in sales.
• B) colluding.
• C) predatory pricing.
• D) bundling.

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Definitions:

Weighted-Average Number

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, giving some numbers more weight than others.

Common Shares

Shares of ownership in a corporation that entitle the shareholder to vote on corporate matters and receive dividends.

Fiscal Year

A financial year used by governments and businesses for accounting purposes, which may or may not align with the calendar year.

Convertible Bonds

Debt securities issued by a corporation that can be converted into a predetermined number of the company's equity shares.