Limit pricing occurs when a firm sets price _________________.
So low that other firms are prevented from entering the market
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Imports are goods and services bought domestically but produced in other countries
Indicate whether the statement is true or false
Providers of health care insurance require applicants to provide information on their medical history. The purpose may be to minimize which of the following problems?
A) moral hazard B) adverse selection C) government taxes D) opportunity cost
Which of the following statements concerning equilibrium in the long run is not true?
A. Most firms earn economic profits in the long run. B. The firm can vary its plant size in the long run. C. Economic profits are eliminated as new firms enter the industry in the long run. D. For firms in long-run equilibrium, P = MC = AC.
Schyler is able to take out a loan for $3,000 for one year at an annual interest rate of 10 percent. After calculating her return to be $200, Schyler will realize she will:
A. lose $100 overall if she takes out the loan. B. make $200 overall if she takes out the loan. C. make $100 overall if she takes out the loan. D. lose $200 overall if she takes out the loan.