Question

Match each unfair business practice with an example of its use.a.predatory pricinglocal pizza delivery companies agree to charge $20 for a large cheese pizza.b.making misleading statementsa large auto maker charges a price below production cost in order to eliminate small competitors.c.price fixinga juice company falsely claims that its drinks reduce the incidence of heart attacks.

Answer 1

Correct matches are:

a.predatory pricing (a large automaker charges a price below production cost in order to eliminate small competitors).

b.making misleading statements (juice company falsely claims that its drinks reduce the incidence of heart attacks.

c.price fixing ((local pizza delivery companies agree to charge $20 for a large cheese pizza.

Above are unfair business practices and their corresponding examples.