"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)dynamic pricing
C)price differentiation
D)FOB origin pricing

Question

Quizplus · Accepted Answer

Given ADM's world-view that the customer is the enemy and the competitor is the friend, it is likely that they would engage in anti-competitive practices such as price fixing, which involves collusion with competitors to set prices at a certain level. This would be in line with their belief that competitors are to be treated as friends.

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