Asked by Teresa Navarro P on Jun 11, 2024

verifed

Verified

It is illegal for companies to offer different prices to different customers for the same goods or services, except:

A) where the company is trying to meet a competitor's price.
B) where the company's corporate vision explicitly states this is a company policy.
C) where the company is pursuing a cost leadership strategy.
D) There is no exception: predatory pricing is always illegal.

Predatory Pricing

The strategy of setting prices at an extremely low level with the intent to eliminate competition, often considered anti-competitive and illegal under antitrust laws.

Cost Leadership Strategy

A competitive strategy where a company aims to become the lowest cost producer in its industry to offer products or services at a lower price than its competitors.

Corporate Vision

A statement that outlines an organization's long-term aspirations and goals, guiding its future direction.

  • Comprehend the legal and ethical implications tied to engaging in price-fixing and predatory pricing strategies.
verifed

Verified Answer

SN
Shaily NandyalaJun 16, 2024
Final Answer :
A
Explanation :
Price matching with a competitor's price is a legitimate reason for offering different prices to different customers.