Predatory Pricing

question 8

Multiple Choice

Predatory pricing:

• A)involves pricing below cost until a competitor drops out and then raising those prices to supracompetitive levels.
• B)involves selling substantially identical goods at reasonably contemporaneous times to different purchasers at different prices.
• C)prevents distributors from selling to some classes of customers.
• D)imposes nonprice restraints including where and to whom products may be resold.

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Definitions:

Management Processes

The series of ongoing actions and tasks undertaken by an organization's management to plan, organize, lead, and control operations.

Performance Metrics

Quantitative measures used to gauge an organization's or individual's performance, often in comparison to a standard or benchmark.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests or best practices from other companies to improve performance.

Best Practices

Established methods or techniques that have been proven to lead to superior results and are used as benchmarks.