When a Firm Increases Output and Accepts a Lower Price

question 412

Multiple Choice

When a firm increases output and accepts a lower price to keep new firms from entering, it is engaging in

• A) limit pricing.
• B) cartel behavior.
• C) collusion.
• D) price fixing.

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Definitions:

Contract

A promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.

Collective Bargaining

The process whereby workers organize collectively and bargain with employers regarding the workplace.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

Per Se

By itself; inherently, referring to something that is taken as a given and needs no additional proof.