Question

Match each type of unfair business practice with its description.

vendor lock-in
A company says that a
wide range of products
can be used with its
product, which is not
actually true.
price fixing
A group of companies
agrees to charge the same
inflated price for a good.
predatory pricing
A large company charges
a price below production
cost in order to eliminate
small competitors.
right answer^^

Answer 1

Answer: See explanation

Step-by-step explanation:

• A company says that a wide range of products can be used with its product, which is not actually true. = vendor lock in.

• A group of companies agrees to charge the same inflated price for a good. = price fixing

Price fixing is when producers or suppliers agree to sell a product at a particular price which is fixed. Price fixing brings about high prices of goods and also fosters unfair competition.

• A large company charges a price below production cost in order to eliminate small competitors = predatory pricing

Predatory pricing simply refers to an illegal act by companies whereby prices are set low in order to remove competition from others. Antitrust laws are violated through predatory pricing due to the fact that it can lead to monopoly.