A number of antitrust laws have been enacted that affect product pricing.Required:A. Define price discrimination and predatory pricing.B. Assume that a company has been charged with price discrimination. What role can cost information play in defending the firm's pricing practices?
What will be an ideal response?
A. Price discrimination involves charging different prices to different customers for the same goods and services when the price differences are not based on variations in production, selling, and/or distribution cost. Predatory pricing, on the other hand, is the practice of reducing a price for a short time in order to enhance demand and then raising the price sharply, often with restricted supply.
B. Such information can be used to show differences in costs of providing a product or service to customers. For example, a customer that places a few large orders having low quality requirements can be served less expensively than another customer that places many small orders with tight delivery times and exacting quality specifications.
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One reason that products are likely to fail in the marketplace is ______.
A. misunderstanding the target market B. correct product positioning C. failure to meet government regulations D. failure to meet ISO requirements
The service manager for a new appliances store reviewed sales records of the past 20 sales of new microwaves to determine the number of warranty repairs he will be called on to perform in the next 90 days. Corporate reports indicate that the probability any one of their new microwaves needs a warranty repair in the first 90 days is 0.05. The manager assumes that calls for warranty repair are independent of one another and is interested in predicting the number of warranty repairs he will be called on to perform in the next 90 days for this batch of 20 new microwaves sold. What is the probability that at least one of the 20 new microwaves sold will require a warranty repair in the first 90 days?
What will be an ideal response?
A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet. The balance of Accounts Receivable can be obtained from the ________
A) schedule of inventory, purchases, and cost of goods sold budget B) cash receipts from customers C) capital expenditures budget D) selling and administrative expenses budget
Has cross listing been beneficial for most listed companies? If yes, why doesn't every company cross-list?
What will be an ideal response?