Microsoft Sets Prices for Its New Line of Computers,and Dell

question 31

Multiple Choice

Microsoft sets prices for its new line of computers,and Dell and HP follow.This practice is known as:

• A) antitrust pricing.
• B) price extortion.
• C) price leadership.
• D) kinked demand behaviour.

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Definitions:

Unregulated

Lacking regulatory restrictions within a particular industry or activity.

Best Efforts Basis

A commitment to perform a task to the best of one's ability, often used in financial transactions to indicate that an underwriter or other party will endeavor to sell as much of an offering as possible without guarantees.

IPO Issues

Refers to the various considerations and challenges that arise during the Initial Public Offering process when a company goes public and offers shares to the public for the first time.

Shelf Prospectus

A regulatory document filed by a company that allows it to issue shares to the public without having to re-file with the securities commission for each offering.