The Price-Cost Squeeze Is

question 5

Multiple Choice

The price-cost squeeze is:

• A) a tactic used by a vertically integrated firm to raise rivals' costs of inputs, while maintaining final product prices.
• B) a strategy whereby a firm temporarily prices below its marginal costs to drive competitors out of the market.
• C) a strategy whereby an incumbent maintains a price below the monopoly price in order to prevent entry.
• D) the act of charging a low price initially upon entering a market to gain market share.