1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Explain how the political systems of countries differ. Explain how the economic systems of countries differ. Explain how the leg
KIM [24]
<h2>Every country operate in a different yet similar system of both political and social affairs.</h2>

Explanation:

Every country operate in a different yet similar system of both political and social affairs. In terms of political differences, some countries have parliamentary governments while some countries like the US have presidential governments.

Regardless of how each country operate politically, most of the operational system of these countries are embedded in democracy and the general welfare of its citizens. The differences occur because of these operational systems of each country. They could differ in policies, reforms or laws which are based on the interests of its people and the nation.

In economic terms, the differences occur when governments prioritize what economic policies or model they choose to implement. Economic systems of a country change according to the need of the times. For instance,  China initially, after its independence, chose to remain a closed economy until it reformed its policies in 1978 to finally open up the country.

Legal systems of countries differ from one another as every country use a civil law system based on its cultural, social, political and historical circumstances. For instance, in US each state has the power to establish its own legal procedures while in some country, every state must follow a uniform civil code.

As we know the political economy refers to both the political and economic systems of a country, management practice of national differences is important to taken into account before securing economic relations with another country. Management practice of national differences helps in finding favorable economic and political systems around the world for a country to make both economic and political partnership with.

6 0
3 years ago
Two years ago, you invested $3,000.00. Today, it is worth $3,750.00. What rate of interest did you earn?
enot [183]

The annual interest rate is 11.803%.

Assumptions:

- Interest is compounded annually.

4 0
3 years ago
The accounting records for Social Event Planning Services include the following select unadjusted balances on December​ 31, 2018
blsea [12.9K]

Answer:

$18,500

Explanation:

The computation of the balance of Service Revenue shown on the  adjusted trial balance is shown below:

= Service revenue ending balance + accrued value

where,

Accrued value =  $1,500 ÷ 3 = $500

And, the service revenue ending balance is $18,000

So, the Service revenue balance equal to

= $18,000 + $500

= $18,500

This is the answer but the same is not given in the options mentioned in the question.

3 0
3 years ago
Rachel's Designs has 2,000 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining
loris [4]

Answer:

the dividend paid to preferred stockholders and  paid to common stockholders is $21,000 and $2,000 respectively

Explanation:

The computation of the dividend paid to preferred stockholders and  paid to common stockholders is shown below:

For preferred stockholders

= (2,000 × 7% × $50) × 3 years (2019,2020 and 2021)

= $7,000 × 3 years

= $21,000

And, for common stockholders

= $23,000 - $21,000

= $2,000

Hence,  the dividend paid to preferred stockholders and  paid to common stockholders is $21,000 and $2,000 respectively

5 0
2 years ago
Stengel Co. enters into a 3-year contract to perform maintenance service for Laplante Inc. Laplante promises to pay $100,000 at
ELEN [110]

Answer:

Stengel Co. is in a contract to perform maintenance service for Laplante Inc. The revenue accounted for the first 2 years will be $100,000 per year, which when received in cash, will be credited to Laplante's account in the books of Stengel. However, in the third year, with the modification of the contract revenue, the disclosure will be done for $100,000 only, with a debit to Contract.

Modification Costs, aggregating $ 20,000, which anyways needs to be expensed off. The amount to be received from Laplante Inc. at the end of the third year in cash, which will be credited to their account, will total $80,000 only.

8 0
3 years ago
Other questions:
  • State sales tax y is directly proportional to retail price x. an item that sells for 170 dollars has a sales tax of 10.22 dollar
    12·1 answer
  • Labeling researchers focus on "extra legal" variables to explain differences in arrest and prosecution rates as well as entencin
    11·1 answer
  • Loss leaders are poorly managed retail companies of outlets. true or false.
    13·2 answers
  • Review and complete the following statement regarding the Income Summary account. The Income Summary account is (debited/credite
    10·1 answer
  • A company has a selling price of $2,300 each for its printers. Each printer has a 2 year warranty that covers replacement of def
    12·1 answer
  • What’d does market value of a good or service mean?
    9·1 answer
  • Based on your understanding of the IS-LM model, graphically illustrate and explain what effect a reduction in consumer confidenc
    12·1 answer
  • Wilcox Electronics uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Ide
    15·1 answer
  • On June 2nd, SEAkayak had the following details for its common stock: 1,000,000 shares authorized, 400,000 shares issued, and 40
    10·1 answer
  • The valuation of the cat food business is based on cash flows of $180,500 per year over a five year period. The target business
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!