Suppose a competitor says that Walmart's everyday low prices are really a type of predatory pricing. Walmart contends that its efficient operations and strong relationships with suppliers, as well as a number of other factors, allow it to keep prices lower than competitors all of the time. A judge determines that Walmart is not guilty of predatory pricing. If Walmart's competitor wanted to prove it was guilty of predatory pricing, what would it have to do?
A) Show that Walmart was undercutting competitors to sell off excess inventory
B) Demonstrate that Walmart did not really have the lowest prices of all retailers
C) Prove that the prices were set low in order to drive out competitors
D) Maintain that Walmart's pricing strategy placed other firms at a disadvantage
E) Prove that Walmart was using price differentials to charge customers different prices
Question 2You developed a new smartphone cover that you have been selling at flea markets around your hometown. You have been pleasantly surprised at how successful the covers have been so far. However, you are becoming increasingly concerned that some copycat vendors have begun selling similar products that have names that are very close to your products' name. What should you do?
A) Incorporate your product's name.
B) File the necessary papers to establish your legal right to your brand mark.
C) File the necessary papers to establish your legal right to your brand.
D) File the necessary papers to establish your legal right to your trademark.
E) Increase your brand recognition by doing more marketing.
Question 3The Sherman Antitrust Act prohibits price fixing. Price fixing is
A) an attempt to establish high prices by becoming the market leader.
B) the use of false or misleading statements or practices to persuade buyers that a product is a better deal than it really is.
C) the practice of employing price differentials that tend to injure competition by giving one or more buyers a competitive advantage.
D) an agreement among competing firms to raise, lower, or maintain prices for mutual benefit.
E) the intent to set a product's price so low that rival firms cannot compete and therefore withdraw from the marketplace.
Question 4Predatory pricing is difficult to prove.
Indicate whether the statement is true or false
Question 5You just finished meeting with your boss and he is very upset about the most recent customer survey results for the firm. A majority of the respondents complained about the limited number of product lines your firm offers. Which of following recommendations should you make to your boss?
A) The firm needs to lengthen its product life cycle.
B) The firm needs to expand the width of its product mix.
C) The firm needs to shorten its product life cycle.
D) The firm needs to expand the depth of its product mix.
E) The firm needs to expand the length of its product mix.
Question 6You are head of a nonprofit organization that has been granted a license to sell products in a small booth in your local airport. You want to maximize your revenue from this venture by selling products that are inexpensive and frequently purchased. Which of the following types of products should you sell?
A) Unsought products
B) Business products
C) Specialty products
D) Shopping products
E) Convenience products
Question 7Predatory pricing involves having the ability to set prices so excessively high that only the highest income consumers can afford them.
Indicate whether the statement is true or false
Question 8The Federal Trade Commission is solely responsible for establishing and enforcing packaging regulations.
Indicate whether the statement is true or false
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