"The customer is our enemy; the competitor is our friend." That's the unofficial world-view of $11-billion-in-sales Archer Daniels Midland (ADM), according to FBI mole-executive Mark Whitacre in an interview. Given this information, which of the following illegal pricing practices would ADM have been most likely to engage in?
A)price fixing
B)price differentiation
C)FOB origin pricing
D)dynamic pricing

Question

Quizplus · Accepted Answer

ADM's view of the customer as an enemy and the competitor as a friend suggests that they may engage in anticompetitive behavior. Price fixing, which involves collaborating with competitors to set prices at an artificially high level, is a likely illegal pricing practice for ADM to engage in based on this worldview.

"The Customer Is Our Enemy; the Competitor Is Our Friend