________ refers to the dominant firm's attempt to drive rivals out of business by temporarily setting price below cost or dropping the price only in certain markets
a. Herfindahl pricing
b. Per se pricing
c. Predatory pricing
d. Marginal cost pricing
c
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Which of the following ideas of Adam Smith has religious overtones?
A. Comparative advantage B. Aggregate demand C. Perfect competition D. Rational expectations E. Invisible hand
Which of the following is missing from the circular flow model depicted in the textbook?
a. businesses b. factors of production c. banks d. what households spend their money on e. goods and services
Maria wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $2.50 per gallon, the car wash costs $2, but if she buys 10 gallons of gasoline, the car wash is free. For Maria, the marginal cost of the tenth gallon of gasoline is
A) $2.50. B) zero. C) $2.00. D) 50 cents.
The impact of instituting investment tax credits is
A) to stimulate private sector investments and increase aggregate demand. B) to stimulate private production and increase aggregate supply. C) to encourage individuals to save in an effort to increase funds available for investment. D) to curtail in excessive lending by financial institutions.