Based on the Above Calculations, What Is the Entrepreneur's Best

question 135

Multiple Choice

Based on the above calculations, what is the entrepreneur's best option?

• A) He should choose site #1.
• B) He should choose site #2.
• C) Neither site meets minimum criteria of $158 per square foot.
• D) Either site will work well since both meet minimum criteria of $158 per square foot.

---

Definitions:

Price Discrimination

A pricing strategy where a company charges different prices for the same product or service based on various criteria like customer location, purchasing power, or quantity bought.

Vertical Price Fixing

An agreement among participants on different levels of the same supply chain to control prices passed on to consumers.

Tying Arrangement

A business agreement in which the sale of one product or service is linked to the purchase of an additional product or service.

Exclusive Dealing

A sales strategy where a seller requires a buyer to purchase only its products and not those of competitors.