Limit Pricing Strategy, When an incumbent firm uses an edge pricing strategy : (w) this

Limit Pricing Strategy

When an incumbent firm uses an edge pricing strategy: (w) this can maximize short run profits and discourage entry in the market. (x) this may not be maximizing short run profits, but this can make positive economic profits over the long run. (y) the firm can discourage entry in the market by pricing below costs. (z) the firm can maximize short run profits, but this may or may not earn positive economic profits within the long run depending on whether other firms enter the industry.

I need a good answer on the topic of Economics problems. Please give me your suggestion for the same by using above options.

View Complete Question

Related Questions in Microeconomics

Q : Marginal cost of the service When

When directory assistance adds to the variable costs of cell phone Company, in that case the efficient price for directory assistance from the vantage point of society as an entire would be: (w) zero. (x) one that covered the average

Q : Marginal Revenue and Costs in purely

Hey friends I need your suggestion for this query about the profit and losses as illustrated graph when this firm produces q2 output, in that case its: (w) MR > MC. (x) MR < MC. (y) MR = MC. (z) P > MC.Please give me right answer for the same.

Q : Example of variable in Short Run The

The resource which a carpet manufacturer is most probable to view as the variable in short run would be: (i) The warehouse it owns (ii) Truck driver. (iii) The truck on a 5-year lease agreement. (iv) Firm’s biggest factory. C

Q : Fixed cost in long run Can there be

Can there be certain fixed cost in long run? If not why? Answer: No, there can’t be any fixed cost in long run. The main reason is that there is no fixed inpu

Q : Determining Substitution products When

When a price hike for Big Gulps of GlugaChug from $1 to $2 improves sales of dehydrated water from 50 to 100 kegs, then the dehydrated water and GlugaChug are: (1) Joint outputs in the production. (2) Complements. (3) Substitutes. (4) Mixed resource alternatives.

Q : Output level on marginal revenue and

When the firm produced at output level q2, this produced where: (w) MR = MC. (x) MR > MC. (y) MR < MC. (z) P < MC.

Q : Securing financing for economic capital

Can someone help me in finding out the most precise answer from the given options. Securing financing for the economic capital for a corporation can’t be accomplished by: (i) Issuing common stock. (ii) Issuing the corporate bonds. (iii) Securing the majority of

Discover Q & A

Leading Solution Library

Avail More Than 1420750 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1949461
Asked

3,689

Active Tutors

1420750

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment