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    Cost Accounting Study Set 1
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    Exam 21: Transfer Pricing and Multinational Management Control Systems
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    When Industry Has Excess Capacity, Market Prices May Drop Sizably
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When Industry Has Excess Capacity, Market Prices May Drop Sizably

Question 13

Question 13

Multiple Choice

When industry has excess capacity, market prices may drop sizably below their historical average.If this drop is temporary, it is called


A) distress pricing.
B) dropped pricing.
C) low-average pricing.
D) substitute pricing.
E) fire sale.

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