As a Result of Learning Curve, ________

question 71

Multiple Choice

As a result of learning curve, ________.

• A) unit costs increase as productivity increases and the unit-cost function behaves nonlinearly
• B) unit costs decrease as productivity increases and the unit-cost function behaves nonlinearly
• C) unit costs increase as productivity increases and the unit-cost function behaves linearly
• D) unit costs decrease as productivity increases and the unit-cost function behaves linearly

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Definitions:

Price Leadership

A form of oligopoly in which one dominant firm sets prices and all the smaller firms in the industry follow its pricing policy.

OPEC Cartel

An organization of oil-producing countries that coordinates and unifies petroleum policies to secure fair and stable prices for petroleum producers.

Predatory Pricing

A competitive strategy where a firm sets very low prices with the intention of driving competitors out of the market, or to prevent new entries.

Antitrust Laws

Regulations designed to promote competition and prevent monopolies by limiting the power of large corporations.