Predatory pricing occurs when a monopolist charges a:
A. price above average total cost.
B. price above average variable cost.
C. low price to drive out competition, then charges a high price.
D. high price to drive out competition, then charges a low price.
Answer: C
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Many cities in California have severe land-use laws and ordinances, which effectively takeoff the market large amounts of land for residential or commercial construction
If the demand for housing increases in these cities without any increase in the stock of housing or commercial buildings then what is the likely impact that this will have on home prices and commercial structures? How might this affect where corporations choose to locate factories?
In 1963, the tax rate for those individuals earning in the highest income tax bracket was 91 percent
a. True b. False
Implicit costs are costs that:
A. require a firm to spend money. B. represent forgone opportunities. C. do not depend on the quantity of output produced. D. depend on the quantity of output produced.
Economic rent serves
A) a descriptive function by making some wealthier than others, but serves no allocative function. B) an allocative function by guiding available supplies to the most efficient use. C) only to make the rich richer and the poor poorer. D) no useful function in a modern economy.