To Prevent Its Competitors from Obtaining Sufficient Supplies to Make

question 47

Multiple Choice

To prevent its competitors from obtaining sufficient supplies to make their products, Continental Steel, Inc., uses its market power to increase the prices of those supplies. This is​

• A) ​price discrimination.
• B) ​business judgment.
• C) ​predatory bidding.
• D) ​predatory pricing.

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Definitions:

Debit/Credit

Fundamental aspects of all accounting transactions, where debits are entries on the left side, and credits are entries on the right side, used to record business transactions in the ledger.

Dividend

Money dispensed by a corporation to its owners/shareholders, generally from the company's earnings.

Investment Income

Income coming from interest payments, dividends, capital gains, and other profits made through an investment.

Associated Companies

Companies that are connected through common ownership or control but aren't subsidiaries or fully owned entities of the parent company.