When LofoniftInc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at the lowest price in the market.This forced many of its competitors out of business
In this scenario, LofoniftInc. most likelyindulgedin _____.
a. predatory pricing
b. price discrimination
c. status quo pricing
d. price fixing
ANSWER: a
LofoniftInc. most likelyindulgedinpredatory pricing. Predatory pricing is the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market.
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Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $690,000, variable expenses of $352,000, and traceable fixed expenses of $104,000. During the same month, the West business segment had sales revenues of $140,000, variable expenses of $56,000, and traceable fixed expenses of $24,000. The common fixed expenses totaled $162,000 and were allocated as follows: $89,000 to the East business segment and $73,000 to the West business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:
A. $145,000 B. $352,000 C. $234,000 D. $249,000
Domestic water carriers have received two major forms of federal promotion. They are:
a. research that led to bigger and more powerful tugboats b. subsidies to plants that located on rivers to use barges c. the work done by the Corp of Engineers and the Coast Guard d. exempting water carrier from regulation and ice breakers on the Mississippi River
IBM/SPSS Modeler uses the "SEMMA" approach to the data mining process. The second "M" in SEMMA refers to
A. Manage. B. Mitigate. C. Model. D. Mix.
Style investing allows control of the total portfolio to be shared between investment managers and pension fund managers
Indicate whether the statement is true or false