Predatory Pricing

question 30

Multiple Choice

Predatory pricing

• A)occurs when a business deliberately prices below its costs in an effort to drive out competitors.
• B)occurs when a business unintentionally prices below its costs which results in driving out competitors.
• C)is legal in all 50 States.
• D)is generally accepted in the United States.

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Definitions:

Assignment

The transfer of rights, property, or duties from one party to another.

Delegation

The act of assigning responsibility or authority to another person to carry out specific duties.

Third-Party Beneficiary

An individual or entity that, while not a direct party to a contract, is intended by the contracting parties to benefit from it.

Novation

The act of replacing an existing contract with a new one, involving a different obligation or party.