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:

Direct Labor Cost

The total cost of all labor that can be directly attributed to the production or manufacturing of goods or services.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor costs.

Administrative Costs

Expenses related to the general operations of a business that are not directly tied to the production of goods or services.

Direct Material

Raw materials that can be directly traced to the production of a specific product.