Lesson 27

Question 1

Which illegal action can result in an overall higher price for consumers because various competitors are pricing products the same to maximize their products

Answer 1

Price-fixing

Question 2

Deceptive pricing

Answer 2

Knowingly staying prices in a manner that gives a false impression to customers is exceptive pricing. Deceptive pricing practices are monitored and enforce by the FTC

Question 3

Price-fixing

Answer 3

Companies are not allowed to collude in regard to pricing to maximize profit with a singular price setting

Question 4

Price discrimination

Answer 4

Companies are not allowed to offer different prices to different sellers without a substantive basis

Question 5

Predatory pricing

Answer 5

Companies are not allowed to sell products below cost to push a competitor out of the market and then raise their prices

Question 6

Fair trade law

Answer 6

Prevents companies or manufacturers from establishing artificially high prices by limiting the ability of wholesalers and retailers to offer reduced or discounted prices