Which of the following is incorrect?
A. A firm can benefit from strategies that raise the marginal costs of its rivals.
B. Predatory pricing is easy to prove in court.
C. Learning curve effects may enable an incumbent to produce at a lower cost than a potential entrant.
D. A firm can benefit from strategies that raise the fixed costs of all the firms in the industry.
Answer: B
You might also like to view...
The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. What policy could government adopt to prevent entry deterrence by the incumbent?
A) production quotas B) price ceiling C) safety standards D) None of the above is correct.
The U.S. inflation adjusted poverty threshold in 2014 was set at $35,000 per year for a family of four.
Answer the following statement true (T) or false (F)
When demand is price-elastic, an increase in price will lead to increased total consumer spending for the product.
Answer the following statement true (T) or false (F)
Increases in long-run average cost that result from output increases is
A. diseconomies of scale. B. constant returns to scale. C. the law of diminishing marginal product. D. economies of scale.