Ingrid runs a near monopoly. She figures if the company sells its products more cheaply than anyone else can manufacture them now, competitors will go out of business, and then the company can charge prices ten times higher than the current price. This is an example of ______.
a. equilibrium pricing
b. competitive pricing
c. predatory pricing
d. price discrimination
c. predatory pricing
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Bob's Funky T-shirts began the year with 1,000 shirts in inventory, produced 10,000 shirts during the year and ended the year with 1,100 shirts in inventory. The 100 shirts added to his inventory will be classified as
A) consumption expenditure. B) investment. C) net exports of goods and services. D) exports of goods and services. E) nondurable consumption goods.
Refer to Figure 5-8. What is the economically efficient level of pollution reduction?
A) 12.5 million tons B) 9 million tons C) 8 million tons D) 0 tons
When the Federal Reserve conducts open market purchases to increase bank reserves without trying to alter the interest rate that is already close to zero, the policy action is called
A) qualitative easing. B) quantitative easing. C) qualitative tightening. D) quantitative tightening.
Cost minimization requires that a firm equate the ratio of marginal products of inputs to the ratio of input prices
a. True b. False Indicate whether the statement is true or false