Refco Is Company That Manufactures Parts of a Car Engine

question 5

Multiple Choice

Refco is company that manufactures parts of a car engine for two major car manufacturers.It decides to shut down an assembly line that produces parts that are specially tailored for one of the car manufacturers.The other manufacturer then increases its order for parts made by Refco.In this example,Refco was practicing a _____.

• A)loss leader strategy
• B)price gouging strategy
• C)commitment strategy
• D)cost plus pricing strategy