Chapter 14-7

Question 1

these include laws that prevent predatory pricing ( pricing below costs to eliminate competition), collusive pricing (coordination prices with competitors), and dumping (charging higher prices in the US than in the home country)

Answer 1

legal restrictions on pricing

Question 2

this involves charging different prices to different customers for the same product

Answer 2

price discrimination

Question 3

these include the sherman act, the clayton act, the federal trade commission act, and the robinsons patman act, which prohibit predatory pricing

Answer 3

antitrust laws in the US

Question 4

a company prices below its costs to drive competitors out of the market, restrict supply, and later recoup losses by raising prices or increasing demand

Answer 4

predatory pricing

Question 5

occurs when companies conspire to set prices above competitive levels, restraining trade

Answer 5

collussive pricing

Question 6

this occurs when a foreign company sells a product in the US at a price lower than in its home market, causing or threatening material injury to a US industry

Answer 6

dumping

Question 7

charging higher prices during high demand periods when capacity is limited

Answer 7

peak load pricing

Question 8

companies lower prices to stimulate demand and utilize excess capacity

Answer 8

slack capacity