In One of Its Least Favorite Actions, Amazon

question 341

Multiple Choice

In one of its least favorite actions, Amazon.com was caught fiddling with its prices. Avid DVD buyers, buying in quantity for resale, found that the online retailer was offering different customers different prices for the same DVD, and complained vociferously. Company officials admitted that the company was trying to see how much it could charge for an item before buyers balked. Amazon was caught attempting

• A)horizontal price-fixing.
• B)price discrimination.
• C)resale price maintenance.
• D)predatory pricing.
• E)bait and switch pricing.

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Definitions:

Slope

A measure of the steepness, incline, or gradient of a line, usually calculated as the ratio of the vertical change to the horizontal change between two points.

Isoquant

A curve that represents all the combinations of two inputs that produce the same level of output in the production process.

Indeterminate

A condition or situation that is uncertain or not clearly fixed, often characterized by a lack of clear direction or outcome.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a business in producing a good or service.