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IRISSAK [1]
3 years ago
15

A major airline sells an aggressively low priced ticket compared to a new low-fare airline, which is trying to enter the market.

The airline may be accused of engaging in the unethical practice of A.predatory pricing.B. price fixing.C. leader pricing.D. price skimming.E. deceptive reference prices.
Business
2 answers:
ankoles [38]3 years ago
8 0

Answer:

The correct option is is A, predatory pricing

Explanation:

Predatory pricing is an illegal approach to pricing where a firm fixes a very low price in order to send competitors out  of business.

This is very applicable to a firm that has economies of scale where its cost per unit reduces as more and more units are produced, making it possible to undercut competitors without feeling much impact in profitability.

This approach is against the anti-trust law as it paves for a monopoly market,where only one firm operating in the market determines the price which is not likely to be favorable to consumers

beks73 [17]3 years ago
6 0

Answer: Predatory pricing (A)

Explanation:

Predatory pricing, also called undercutting, is a pricing strategy whereby a company prices a good or service low in order to have new customers, create barriers to entry and drive intending competitors out of the market.

When the potential or current competitors cannot maintain lower or equal prices without running a loss, they leave the market which makes the predatory merchant have fewer competitors to contend with. Predatory pricing is illegal under certain laws.

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If the required reserve ratio is 10%, actual reserves are $10 million, and currency in circulation is equal to $20 million, M1 w
Pie

Answer:

The correct answer is E

Explanation:

M1, M2 and M3 are the terms which measure the money supply of United States, referred to as money aggregates.

The formula for computing the M1 is as:

M1 = coins as well as currency in circulation + checkable or demand deposit + traveler checks

where

Currency in circulation is $20 million

Demand deposit is as:

= Required reserve × Actual reserve

= 10 ×  $10 million

= $100 million

Putting the values above:

M1 = $20 million + $100 million

M1 = $120 million

8 0
3 years ago
Assume that a country with an open economy has a fixed exchange-rate system and that its currency is currently overvalued in the
olasank [31]

Answer: b. The quantity of the country's currency supplied exceeds the quantity demanded.

Explanation:

A country operating a fixed-exchange rate system would be actively trading its currency to ensure that it remains at a certain rate. If the currency is overvalued, it means that the currency is actually weak and is being propped up by the company's actions in the forex market.

A reason for the weakness would be that the supply is higher than the demand of the currency which means that, as per the rules of supply and demand, the currency is trading at a lower price, i,e., it is weak.

7 0
3 years ago
Now consider the relationship between the price level and the quantity of money that people demand. The lower the price level, t
gayaneshka [121]

Answer: less, less

Explanation: considering the relationship that exist between the price level and the quantity of money that people demand. The lower the price level, the less money the typical transaction requires, and the less money people will wish to hold in the form of currency or demand deposits.

7 0
3 years ago
The costs incurred before opening a business​
True [87]

The expenditure incurred prior to the incorporation of an enterprise is to be considered as a pre-incorporation capital expenditure. The expenditure incurred prior to the 'setting-up of business' is to be considered as a pre-operative capital expenditure.

8 0
3 years ago
An entrepreneur establishes a social justice online retail company. The company purchases authentic artwork, jewelry and crafts
Greeley [361]

Answer:

a. Developing a robust marketing program to promote the social justice elements of the business and gain insights into consumer purchasing behavior on the website

Explanation:

In order to sustain the business, the entrepreneur should create a robust marketing program in which he is able to promote the components of social justice and also the behavior of the consumer on the website so that he gets to know how much people are active in his website, what are the problem people are facing, etc

Hence, the correct option is a

3 0
3 years ago
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