Cannibalization is:
a. Reducing the sales of own firm
b. Improving quality over a rival's product
c. Reducing costs
d. Increasing one's output to reduce sales of another firm
d
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The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture
A quota to prevent the overuse of the common pasture sets the number of goats to be raised equal to ________. A) 0 goats B) 40 goats C) 50 goats D) 55 goats
Suppose the firms in a monopolistically competitive market are incurring economic losses. What will happen to move the market to its long-run equilibrium?
A) More close substitutes will appear in the market until economic profits are zero. B) The firms that dropped out of the market will reenter once the level of economic losses is zero. C) Firms will continue to exit the market until economic losses are equal to zero. D) The demand functions of all the firms remaining in the market will become relatively more elastic.
Which of the following is a non-price determinant of supply?
A) the price of related goods consumers may buy B) technological advances in production C) consumers' incomes D) the number of consumers
Which of the following was an underlying cause of the economic crisis of 2008?
a. a failure of government to impose regulations on Fannie Mae, Freddie Mac, and other mortgage lenders b. the imposition of government regulations on Fannie Mae, Freddie Mac, and other lending institutions that eroded the conventional lending standards in place prior to the mid-1990s c. greedy mortgage lenders who extended risky loans to sub-prime borrowers even though the regulators were trying to limit these loans d. federal housing regulations that made it difficult for Fannie Mae, Freddie Mac, and other lending institutions to obtain sufficient loanable funds for the finance of housing construction