Predatory pricing occurs when a firm sells
A) above cost to any customers who have no good alternative.
B) above cost to low-income customers who have no good alternative.
C) at whatever prices the market will bear.
D) below cost in order to eliminate competitors.
E) only to customers who agree to rebate a portion of the price.
D
You might also like to view...
Most economists agree that a majority of recessions are caused by supply shocks
Indicate whether the statement is true or false
An downward shift in a worker’s budget line is a result of
a. an increase in the wage rate. b. a decrease in the wage rate c. an increase in nonlabor income. d. a decrease in nonlabor income.
In order to calculate the price level, which of the following would you need to know?
a. the levels of supply and demand for all goods and services in the economy b. the rate of inflation c. the prices of all of the goods and services in the economy d. the level of the money supply in the economy
Suppose you have just landed a job near the center of a city and you now need to decide where to live. If you live close to the city? center, your? round-trip commute will be 15 minutes. If you live in the distant? suburbs, your? round-trip commute will be 60 minutes. There are lots of workers like you who work downtown. Since there are only a limited number of apartments near the city center, these apartments will be allocated based on __________ that you face. This process is known as _____________.
Fill in the blank(s) with the appropriate word(s).