An Example of Vertical Foreclosure Is When a Firm

question 58

Multiple Choice

An example of vertical foreclosure is when a firm:

• A) temporarily prices below its marginal cost to close competitors out of the market.
• B) merges with a rival firm with the intention of eliminating the rival firm's product from the market.
• C) that controls an essential upstream input refuses to sell to other downstream firms that need the input.
• D) merges with a rival firm with the intention of eliminating the rival firm's product from the market and that controls an essential upstream input refuses to sell to other downstream firms that need the input.

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Definitions:

Scientific

Relating to or based on the systematic and empirical study of the natural world through observation and experiment.

Sexual Behaviors

Actions or practices related to the pursuit of sexual pleasure or reproduction.

Cause-and-Effect Relationships

The relationship between events where one or more are the cause of the other(s), establishing a connection between a condition or event and its outcome or consequences.

Naturalistic Observation

A research method in which subjects are observed in their natural environment without any manipulation by the researcher.