Question

61. A hypothetical: Duracell cuts its prices by half in its competition against Energizer. Energizer marketers accuse Duracell of "predatory pricing" as they are certain that the new price is below the actual cost of production! As a marketer, you know this may be difficult to prove in court because you must prove that: A. Duracell is attempting to increase revenue by breaking the law-that is, employing regulated pricing B. Duracell is attempting to increase share by pricing disallowed by the National Advertising Division (BBB) C. Duracell is trying to put Energizer out of business D. Duracell is product dumping E. None of the above-if Duracell marketers want to sell products at half the price, that is their business

Answer 1

61.c.Duracell is trying to put Energizer out of business.(by selling at a price which is below the actual cost of production so that once Energizer is out of business, duracell can charge premium rates from consumers and create monopoly).