Predatory pricing is defined to be
A) collusive pricing.
B) behavior designed to drive out current competition.
C) cooperative behavior between two firms with monopoly power.
D) collusion.
B
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Consider two countries—A and B. Country A is characterized by a command economy, absence of property rights, high entry barriers for new businesses, and forced child labor
Country B, on the other hand, is characterized by well-defined private property rights, a developed market system, and no entry barriers for new businesses. Which of the two countries is likely to oppose creative destruction more? Why?
"If firms in an oligopoly operate as a monopoly, the industry produces the most output and if they operate as perfect competitors, the industry produces the least output." Is the previous statement correct or incorrect? Why?
What will be an ideal response?
A trade deficit involves:
a. net flows of goods from foreign countries to the domestic government. b. net money flows from the foreign firms to the domestic government. c. net money flows from the domestic firms to the domestic government. d. net money flows from the foreign firms to the domestic firms. e. net flows of goods from foreign countries to the domestic firms.
Since a tax imposed on buyers of a product only affects demand, such a tax has no impact on sellers in that market
a. True b. False Indicate whether the statement is true or false