Examlex
Which of the following is a process theory of motivation?
Marginal Cost
The increase in total cost that arises from an additional unit of production.
Average Total Cost
Average total cost is the total cost of production divided by the number of units produced, indicating the cost per unit.
Price War
Successive, competitive, and continued decreases in the prices charged by firms in an oligopolistic industry. At each stage of the price war, one firm lowers its price below its rivals’ price, hoping to increase its sales and revenues at its rivals’ expense. The war ends when the price decreases cease.
Limit Pricing
A strategy used by dominant firms to set prices low enough to discourage entry into the market by potential competitors.
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