Suppose a small regional airport is served by one of the major airlines, and a new low-cost airline enters the market
If the major airlines cuts its air fares in this market to levels that are below its marginal cost in response to the other firm's entry, then the major airline may be engaging in A) parallel conduct.
B) parallel pricing.
C) predatory pricing.
D) unlawful collusion.
C
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Explain why a monopsony's marginal cost of labor is greater than the wage rate
What will be an ideal response?
When the economy is in short-run equilibrium,
A) there are increases in inventory. B) there are decreases in inventory. C) total expenditures equal total production. D) people want to buy more than will be produced.
Oligopoly is about the ________ and monopolistic competition is about the ________.
A. variety of products; number of firms B. number of firms; variety of products C. variety of products; barriers to entry D. barriers to entry; number of firms
Suppose that labor is mobile between sectors but that capital and land are specific. Then labor will tend to benefit from trade when:
a. it spends a large amount of its income on the imported good. b. it spends a large amount of its income on the exported good. c. wages do not change much in percentage terms. d. all of these occur.