Miscommunication and Misunderstanding May Be More Likely to Happen Between

question 133

True/False

Miscommunication and misunderstanding may be more likely to happen between people who are similar as compared to those that are different.

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Definitions:

Marginal Cost

The increase in total cost that arises from an additional unit of production.

Average Total Cost

Average total cost is the total cost of production divided by the number of units produced, indicating the cost per unit.

Price War

Successive, competitive, and continued decreases in the prices charged by firms in an oligopolistic industry. At each stage of the price war, one firm lowers its price below its rivals’ price, hoping to increase its sales and revenues at its rivals’ expense. The war ends when the price decreases cease.

Limit Pricing

A strategy used by dominant firms to set prices low enough to discourage entry into the market by potential competitors.