Question

If a firm prices a product below its marginal cost of producing it to drive rivals...

If a firm prices a product below its marginal cost of producing it to drive rivals out of business, this is called

A. Exclusive Pricing

B. Price Discrimination

C. Predatory Pricing

D. Exclusive Dealing

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
When a firm prices its goods below the marginal cost to drive away competitors, it is...
When a firm prices its goods below the marginal cost to drive away competitors, it is referred as price skimming. limit pricing. penetration pricing. predatory pricing.
A firm's output price is $5 and the firm is producing 37 units with a marginal...
A firm's output price is $5 and the firm is producing 37 units with a marginal cost of $3. The firm should A. lower its price. B. decrease production. C. increase production. D. raise its price.
Jacob is a manager of factory in the apple producing businesses, and the firm is expanding...
Jacob is a manager of factory in the apple producing businesses, and the firm is expanding its size, while its average costs of production remain the same. The firm is operating in: A) Increasing-cost industry B) Decreasing-cost industry C) Productive efficient and allocative inefficient industry D) Constant-cost industry Which of the following is consistent with a competitive market? A) A small number of firms. B) Exit of small firms when profits are high for large firms. C) Zero economic profit...
1. The supply curve of a perfectly competitive firm is ______ a. The Marginal cost curve...
1. The supply curve of a perfectly competitive firm is ______ a. The Marginal cost curve above the average variable cost curve b. The Marginal cost curve c. The Variable cost curve d. The Marginal cost curve below the variable cost curve . 2. A shopkeeper is increasing the price of a product after seeing my dress/ car is an example of __________________. a. None of the options are true b. Monopoly market with price discrimination c. Perfectly competitive market...
The marginal cost of producing a paperback is half the marginal cost of producing a hardback...
The marginal cost of producing a paperback is half the marginal cost of producing a hardback version sold to consumers at four times the paperback price. If the price elasticity of demand for paperbacks is –4, then the price elasticity of demand for hardcover books is: a. –1.6 b. –0.6 c. –4.6 d. –2.6 e. –3.6
The marginal cost of a product can be thought of as the cost of producing one...
The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For​ example, if the marginal cost of producing the 50th product is​ $6.20, it cost​ $6.20 to increase production from 49 to 50 units of output. Suppose the marginal cost C​ (in dollars) to produce x thousand mp3 players is given by the function Upper C left parenthesis x right parenthesis equals x squared minus 120 x plus 7500.C(x) =...
1. Your firm produces two products where marginal cost of production for each product is equal...
1. Your firm produces two products where marginal cost of production for each product is equal to $30. The following table shows the reservation prices (minimum price consumers willing to pay) of different types of consumers for each of your product. consumer type product 1 product 2 A 25 100 B 40 80 C 80 40 D 100 25 Consider three alternative pricing strategies (i) only selling the goods individually (ii) only bundling and (iii) providing both as a package...
Question 42 Marginal cost is ________. A. the total cost of producing one unit of a...
Question 42 Marginal cost is ________. A. the total cost of producing one unit of a good or service B. the average cost of producing a good or service C. the difference between the lowest price a firm would have been willing to accept and the price it actually receives D. the additional cost to a firm of producing one more unit of a good or service BAM223 - PRINCIPLES OF ECONOMICS
Predatory pricing ___ Selling identical goods to different customers at different prices Dumping____ Setting prices highest...
Predatory pricing ___ Selling identical goods to different customers at different prices Dumping____ Setting prices highest when the amount demanded by customers approaches capacity Price discrimination____ Setting prices low to get competitors out of the market Peak-load pricing____ Exporting a product at a price below the domestic cost Price fixing____ Businesses agreeing to establish prices at a particular level
Consider a market with a monopoly firm. Sales revenue of this firm is $15,120,000, total cost...
Consider a market with a monopoly firm. Sales revenue of this firm is $15,120,000, total cost is $9,180,000, and average cost is $3.40. Another firm wants to enter the market and provide the same product at a lower price. To intimidate the potential competitor, the monopoly firm intends to use predatory pricing. By how much can this firm reduce the price of its product without losses? Enter your answer in the box below and round to two decimal places if...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT