Limit pricing is:
A. the act of charging a low price initially upon entering a market to gain market share.
B. a strategy whereby an incumbent maintains a price below the monopoly price in order to prevent entry.
C. a strategy used by a vertically integrated firm to raise rivals' costs of inputs, while holding constant final product prices.
D. a strategy whereby a firm temporarily prices below its marginal costs to drive competitors out of the market.
Answer: B
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Which of the following is TRUE about exchange rates?
A) They should not be volatile because they will determine the economic climate. B) They are generally more volatile than stock prices. C) They are more volatile than several underlying factors that move them such as money supplies and fiscal variables. D) They should be volatile because to correct price signals they adjust quickly in response to economic news, but they are generally less volatile than stock prices. E) They never overreact to economic news.
Why might population growth and immigration stimulate economic growth?
What will be an ideal response?
Adele wants to buy a house at a fixed mortgage rate, Zen wants to buy a luxury vehicle with his savings, Fang wants to buy stocks of a blue-chip company with his salary, and Zayeda wants to book an apartment with the money she won in a lottery. If the Fed had implemented a contractionary monetary policy that is still effective, _____ is likely to be most adversely affected
a. Zayeda b. Fang c. Adele d. Zen
Jenner is obtaining a patent for the new diet drink formulation he created. He hopes that Coca Cola and other companies will be interested in licensing his formula. Jenner is protecting his _____ property with the patent.
Fill in the blank(s) with the appropriate word(s).