A pricing strategy below cost is often claimed to be ________, done to drive rivals out of business so that the firm can subsequently raise its price back up to the monopoly level.
A. predatory
B. fair
C. ethical
D. None of the above is correct.
Answer: A
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While many analysts defended the actions taken by the Fed and the Treasury to respond to the financial crisis in 2008, others were critical of these actions. The critics were concerned that by not allowing large firms to fail
A) stockholders and bondholders of these firms were not allowed to receive the proceeds from the sale of assets that would have occurred if the firms had declared bankruptcy. B) there is an increased likelihood that other firms will engage in risky behavior in the future with the expectation that they will also not be allowed to fail. C) there will be less competition in the U.S. economy, which could led to higher prices for consumers. D) smaller firms will resent not receiving similar assistance.
When the nominal interest rate is constant, ________ in the growth rate of the money supply ________ the inflation rate, and ________ the debt-to-GDP ratio
A) an increase; increases; increases B) an increase; decreases; increases C) a decrease; decreases; decreases D) a decrease; decreases; increases
The loss-minimizing output for the perfectly competitive firm occurs at the point at which
A) TR - MR = minimum. B) TR - TC = maximum. C) MR = MC. D) TC - ATC = maximum.
If GDP in year 1 is the same dollar amount as the GDP in year 2, does it follow that Real GDP in year 1 is the same as Real GDP in year 2?
A) Yes, since prices must necessarily be the same in the two years. B) No, since equal GDP figures do not account for population. C) No, since prices may not be the same in the two years. D) Yes, since equal GDP figures do account for a change in the quality of goods produced in the two years. E) none of the above