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Video of Predatory Pricing. Dumping. Price Discrimination. Peak Load Pricing Price Fixing. Cost Accounting in Costs Accounting course by Farhat Lectures. The # 1 CPA & Accounting Courses channel, video No. 32 free certified online
What are predatory pricing, dumping, price discrimination, peak load pricing, and price fixing? In this cost accounting lesson for CPA BAR and CMA candidates, Professor Farhat explains five legal and ethical pricing issues — what each practice is, when it is legal or illegal, and how it affects competition and consumers. Great for cost accounting, economics, and business students.
Try it free at farhatlectures.com — interactive exercises, lectures, simulations, cases, multiple choice, and AI tools for CPA, CMA, EA and students.
Video Timeline & Key Concepts:
0:00 — Introduction
1:09 — Predatory pricing
3:49 — Dumping
5:50 — Price discrimination
7:51 — Peak load pricing
9:00 — Price fixing
Frequently Asked Questions:
What is predatory pricing?
Predatory pricing is the illegal practice of setting prices below cost to drive competitors out of the market or block new entrants. Once rivals are eliminated, the company often raises prices to recover its losses.
What is dumping in international trade?
Dumping occurs when a company exports a product to another country at a price lower than it charges at home. It can benefit foreign consumers in the short run but harm local industries, often prompting calls for tariffs.
When is price discrimination legal?
Price discrimination — charging different customers different prices for the same product — is legal when based on legitimate market segmentation, such as student discounts or demand-based airline fares. It is illegal when based on protected characteristics.
What is peak load pricing?
Peak load pricing adjusts prices based on demand, charging more when demand approaches capacity. It is common in utilities and in travel and airline pricing during peak periods.
What is price fixing?
Price fixing is an illegal agreement among competitors to set prices at a certain level to avoid competing. It covers both explicit and implicit agreements and is strictly prohibited under antitrust laws.
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