To Minimize the Chances of Violating Pricing Laws, a Company

question 131

Multiple Choice

To minimize the chances of violating pricing laws, a company should

• A)maintain records that permit easy compilation of variable costs.
• B)use a variable cost plus markup method of pricing.
• C)keep a record of the upstream costs associated with low cost products.
• D)use dumping only when a product is at the end of its life-cycle.
• E)ensure that prices do not exceed variable costs plus fixed costs.

---

Definitions:

International Trade Agreements

Treaties in which a country promises to engage in less trade protection against the exports of other countries in return for a promise by other countries to do the same for its own exports.

Autarky

An economic condition or system in which a country is self-sufficient and does not engage in international trade.

Consumer Surplus

The gap between the maximum sum consumers are ready to pay for a product or service and the sum they ultimately spend.

Autarky

This is a situation where a country or region is self-sufficient and does not engage in international trade with other countries.