Although the practice of predatory pricing is a common claim in antitrust suits, some economists are skeptical of this argument because they believe
a. the evidence of its practice is nearly impossible to collect.
b. predatory pricing is not a profitable business strategy.
c. even though predatory pricing is a profitable business strategy, it is on balance beneficial to society.
d. predatory pricing actually attracts new firms to the industry.
b
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Who had served as a de facto lender of last resort during the 1907 panic?
A) The U.S. Treasury B) J. P. Morgan C) Henry Ford D) John D. Rockefeller
If the expected rate of return on investment spending increases, the investment spending function _____
a. shifts upward b. shifts downward c. rotates upward d. rotates downward
When there is a tendency for a particular product to come into favor with additional consumers because other consumers have chosen to purchase the product
A. there is no dominant strategy. B. negative market feedback occurs. C. a price war must result. D. positive market feedback occurs.
With regard to a public good provided by the government:
A. individuals reveal their demand when they buy the good. B. a free rider problem is unlikely. C. individuals have an incentive to exaggerate their willingness to buy the good if they will not be taxed. D. individuals have an incentive to conceal their willingness to buy the good if they will not be taxed.