What is the difference between price discrimination and predatory pricing?
What will be an ideal response?
Price discrimination occurs when a firm divides consumers into two or more groups and charges each group a different price for the same product. Predatory pricing occurs when a firm decreases the price of a product to drive a rival out of business. Once the rival is gone, the firm increases the price of the product.
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Refer to Figure 11-13. The lines shown in the diagram are isocost lines. Which of the following shows an increase in the firm's total cost while the price of labor and capital remain unchanged?
A) the movement from CE to AF B) the movement from BD to AF C) the movement from BD to CE D) the movement from CE to BF
Answer the following statement(s) true (T) or false (F)
1. The RCRA Amendments of 1984 continued to promote land disposal for hazardous wastes. 2. Identification of hazardous wastes under the law relies on risk-benefit analysis. 3. Standards on treatment, storage, and disposal facilities (TSDFs) are set to achieve allocative efficiency. 4. The land restrictions may act to provide an incentive to reduce hazardous waste generation. 5. A waste-end charge is a fee based on the quantity of waste generated that is imposed at the time of disposal.
The marginal rate of substitution is
A. the slope of the utility curve. B. the slope of the contract curve. C. the slope of the utility possibilities curve. D. none of these answer options are correct.
Once a government has provided a public good, everyone:
A. pays the cost. B. experiences negative externalities. C. experiences positive externalities. D. can obtain the benefit.