A firm could be engaged in successful predatory pricing if:
a. It charged prices greater than the average variable cost of production.
b. It did not drive rivals out of the market
c. It did not raise its prices after its predatory price cutting.
d. None of the above is true.
d
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Twenty years ago a stove cost $300 and a refrigerator cost $1,500. Today a stove costs $600, while a refrigerator costs $1,800. Which of the following statements is TRUE?
A) The relative price of stoves and refrigerators has not changed. B) The relative price of a refrigerator has increased. C) The relative price of a stove has increased. D) The money price of a refrigerator has fallen.
In the steady state, assuming that a constant share of the population is working,
A) both real GDP per worker and real GDP per capita will grow at the same rate. B) real GDP per worker will grow at a faster rate than real GDP per capita. C) real GDP per capita will grow at a faster rate than real GDP per worker. D) both real GDP per worker and real GDP per capita will remain constant.
Everyone agrees that globalization causes greater income inequality between rich and poor countries
Indicate whether the statement is true or false
Current income minus spending on current needs equals:
A. wealth. B. investment. C. transfers. D. saving.