It Might Be Rational for a Firm to Price Its

question 47

Multiple Choice

It might be rational for a firm to price its products below ________ costs in order to drive potential entrants from entering a market.

• A) fixed
• B) average variable
• C) average fixed
• D) implicit
• E) explicit

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Definitions:

Parol Evidence

The rule in contract law that prohibits the introduction of evidence of prior or contemporaneous oral agreements to alter, contradict, or add to the terms of a written contract.

Typographical Error

A typographical error is a mistake made in the typing process of written or printed material, often referred to as a typo.

Requirements

Conditions or capacities needed by individuals or systems to achieve specific goals or functions.

Oral Agreement

A contract or agreement where the terms have been spoken but not written down, yet is legally binding.