Briefly describe the practice of predatory pricing
Predatory pricing occurs when a firm lowers its price temporarily for the purpose of driving a competitor out of business.
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Relative poverty refers to
A) how a family's income compares to the incomes of those around them. B) poverty levels at a stated income cutoff. C) the number of poor in one state relative to another. D) none of the above.
The accepted philosophy on U.S. federal deficits prior to the Great Depression was that: a. the budget should be balanced cyclically
b. a budget deficit does not matter as long as the economy is at full employment. c. the budget should be annually balanced. d. deficits dampen aggregate demand in the short run and reduce the federal debt. e. spending decreases during expansions and increases during recessions.
A tax levied on the sellers of a good shifts the
a. supply curve upward (or to the left). b. supply curve downward (or to the right). c. demand curve upward (or to the right). d. demand curve downward (or to the left).
An office supply store sells a ream of printer paper at a fixed price of $4.50. Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?
A) marginal revenue B) gross earnings C) pure profit D) marginal costs E) net benefit