Predatory pricing is a permanent price reduction designed to alter market shares or drive out competition.
Answer the following statement true (T) or false (F)
False
Predatory price cuts are temporary price reductions intended to drive out new competition or reestablish market shares.
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During the worst of the Great Depression, in 1932 and 1933, disposable income was so low that it actually ________ aggregate consumption, so that aggregate saving became ________
A) rose above, positive B) rose above, negative C) fell below, positive D) fell below, negative
A market situation in which there are a few large firms is called
A) monopolistic competition. B) imperfect competition. C) oligopoly. D) monopoly.
Selling a good abroad below the price charged in the home market, or at a price below the cost of production is called
A) dumping. B) import substitution. C) a quota. D) a tariff.
The income of Lebron James, for example, is determined by
a. the position of the demand curve. b. the number of athletes in the NBA. c. his supply curve for labor services. d. marginal rent.