Several national fast-food chains offer "kids' meals" with free giveaway toys, something many independent, local establishments cannot afford to do. The national chains are
A) engaging in predatory pricing.
B) selling meals below cost.
C) distributing toys below cost.
D) engaging in anti-competitive behavior because the independents cannot afford to give away toys.
E) almost certainly doing none of the above.
E
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If those who consumed common resources were subject to a tax that was equal to the external costs that they imposed due to the negative externality created, their demand curve would shift:
A. up and they would consume more. B. down and they would consume less. C. down and they would consume more. D. up and they would consume less.
If price is above the equilibrium price, then there will be:
A. excess supply. B. neither excess supply nor excess demand. C. excess demand. D. both excess supply and excess demand.
Society will produce ________ if price and marginal cost are equated for all firms.
A. the efficient mix of output B. the minimum output C. the maximum output D. no output
By raising and lowering the discount rate, the Fed changes the
A. Level of required reserves held by individuals. B. Incentive for banks to borrow reserves. C. Incentive for banks to buy common stock. D. Money multiplier.