Selling at a price that is only slightly above the firm's cost of production is called predatory pricing
a. True
b. False
Indicate whether the statement is true or false
False
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If a technological advance makes it possible to produce computers at a lower cost
A) the demand for computers decreases. B) the demand for computers increases. C) the supply of computers increases. D) the supply of computers decreases.
A monopoly creates a deadweight loss because the monopoly
A) sets a price that is too low. B) makes a normal profit. C) does not maximize profit. D) produces less than the efficient quantity. E) produces more than the efficient quantity.
A tariff can be defined as a:
a. tax on imports. b. tax on exports. c. legal limit on imports. d. legal limit on exports.
One reason for the short-run aggregate supply curve (SRAS) is:
A. a fixed CPI market basket. B. perfect knowledge of workers. C. fixed-wage contracts. D. the upward-sloping production function.