Temporary Price Reductions Intended to Drive Out Competition Are Referred

question 118

Multiple Choice

Temporary price reductions intended to drive out competition are referred to as

• A) Predatory pricing.
• B) Price-fixing.
• C) Price leadership.
• D) Retaliation.

Comprehend the characteristics and outcomes of constant-cost, increasing-cost, and decreasing-cost industries.

Analyze the effects of changes in consumer demand on market price and output in different types of competitive industries.

Understand the relationship between marginal cost, average total cost, and price in determining long-run equilibrium.

Identify the conditions under which purely competitive firms make economic profits or losses in the short run and long run.