To Drive Its Competitors Out of a Certain Geographic Segment

question 17

Multiple Choice

To drive its competitors out of a certain geographic segment of its market,Drone Drives,Inc.,sets the prices of its products below cost for the buyers in that area. This is

• A)price-fixing.
• B)business acumen.
• C)predatory pricing.
• D)price discrimination.

---

Definitions:

Indirect Materials

Supplies used in the production process but not directly traceable to a finished product, such as lubricants for machinery.

Direct Materials

Raw materials that are directly traceable and allocable to the production of specific goods or services.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs to a production process for subsequent modification or transformation into finished goods.

Direct Labor

The workforce directly involved in product manufacturing, whose labor is easily traced to the product itself.