Five pricing practices are scrutinized because of potential unethical or illegal actions. They are (1) predatory pricing, (2) price discrimination, (3) deceptive pricing, (4) geographical pricing, and (5) __________.
A)price discounting
B)lateral price fixing
C)price fixing
D)delayed payment pricing
E)price discrimination

Question

Quizplus · Accepted Answer

The answer choices for this question are a bit confusing as they include price discrimination twice. However, the fifth pricing practice that is typically scrutinized is not price discrimination (which was already listed as the second option) but rather price fixing. Price fixing is when two or more competitors agree to set prices at a certain level, which is illegal and unethical as it eliminates competition and can lead to higher prices for consumers.

Five Pricing Practices Are Scrutinized Because of Potential Unethical or Illegal