Digital Wizards Inc

question 9

Multiple Choice

Digital Wizards Inc., a franchisor of computer technicians, wishes to standardize the pricing practices of its franchisees because they have engaged in price-cutting to increase their respective shares of the market. The most prudent action might be for Digital Wizards to

• A)mandate the prices at which its franchisees sell their services.
• B)suggest the prices at which its franchisees sell their services.
• C)require its franchisees to pay a premium based on their market share.
• D)threaten its franchisees with a suit for material breach of contract.

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Definitions:

Midwest

A geographical region in the United States known for its diverse landscapes, agriculture, and as the heartland of the country.

Rural South

Region in the southern United States characterized by predominantly agricultural economies and communities, often contrasted with the urban North.

New South

A term referring to the economic shift in the southern United States from an agrarian economy to one more industrialized and integrated into the national economy after the Civil War.

Phonograph

An early sound-reproducing machine that played records by tracing a stylus over a rotating cylinder or disc, invented by Thomas Edison in 1877.