If a monopolist sets a low price to discourage potential competitors from entering the market, it is referred as
A) price skimming.
B) predatory pricing.
C) penetration pricing.
D) limit pricing.
D
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Which of the following is an example of an effort to decrease physical capital differences between an advanced and a developing economy?
A) American troops build roads in Afghanistan. B) Through World Vision, women and children in Africa receive education. C) Peace Corps volunteers teach English around the world. D) Creating Hope International trains women in Afghanistan to become tailors. E) Habitat for Humanity builds houses for low income families in the United States.
A firm could gain from cheating on a cartel agreement by doing all of the following except:
A) raising its price above the agreed level. B) lowering its price below the agreed level. C) selling more than its agreed quota. D) increasing production.
Bans or quotas that limit the use of common resources are straightforward public-policy approaches to solving the problem of overuse if:
A. the community agrees to aid in its enforcement. B. countries have the resources to enforce them. C. the community affected participates in setting the punishments for breaking the policy. D. None of these statements is true.
A . What effect will a tax on cigarettes have on the consumption of cigarettes and on the wallets of smokers who are addicted to cigarettes? b. What effect will a tax on cigarettes have on the decision of teenagers to smoke? c. Describe the cross elasticity between cigarettes and the price of a Nicoderm patch, which is used to fight the craving for nicotine