When a Company Prices One Product Below Normal Cost Until

question 60

Multiple Choice

When a company prices one product below normal cost until competitors are eliminated and then sharply increases the price,the company is practicing _ pricing.

• A)Secondary
• B)Horizontal
• C)Primary
• D)Competitive
• E)Predatory

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Definitions:

Quasi-Contracts

Legal obligations created by courts where no true contract exists, to prevent unjust enrichment of one party at the expense of another.

Bilateral Contract

An agreement involving two parties where each side promises to perform a certain duty or pay a specified amount.

Negotiable Instruments

Financial documents that guarantee the payment of a specific amount of money, either on demand or at a set time, and are freely transferable from one party to another.

Recognizances

Formal acknowledgments or commitments, often recorded in legal documents, where an individual pledges to perform an act or adhere to an agreement.