--%>

Practicing for predatory pricing

A firm which practices predatory pricing as: (w) tends to incur short-run losses greater than its rival. (x) lowers its price to drive out its rival and then keeps the price low to discourage extra entry. (y) will sell similar amount of output as when it wasn't practicing predatory pricing, but this will sell the goods for a lower price. (z) all of the above.

Hey friends please give your opinion for the problem of Economics that is given above.

   Related Questions in Microeconomics

  • Q : Gaining more Consumer Surplus I have a

    I have a problem in economics on gaining more Consumer Surplus. Please help me in the following question. Sushi lovers would be most probable to gain more consumer surplus as an outcome of rises in the: (i) Price of the steamed rice. (ii) Supply of sushi. (iii) Income

  • Q : Normal accounting profit The only

    The only profit earned within the long run through a purely competitive firm is of: (w) normal accounting profit. (x) offset by short term losses. (y) created by exceptionally astute managers. (z) unrelated to its opportunity costs.

    Q : Define Direct taxes Direct taxes :

    Direct taxes: Whenever the liability to pay tax and the burden of that tax fall on similar person, it is termed as direct tax. Illustrations are: wealth tax, income tax, corporation tax, gift tax and so on.

  • Q : Costs and Operating Decisions The firm

    The firm will stop the progress of it operations unless the firm’s owner(s) anticipate that future revenues will: (1) Produce an economic profit. (2) Cover the predicted totals of all future explicit and implicit costs. (3) Yield an accounting profit. (4) As wel

  • Q : Characteristics of constant cost

    Characteristics of industries which are not characteristics internal to operations of an individual firm include: (1) potential principal-agent problems. (2) diseconomies of scale. (3) production costs which either increase or decrease like the size of a market not su

  • Q : Profit Maximization-total proceeds and

    The entire profit maximizing organization will hire more labor up to the point where: (w) Average physical product of labor equivalents the nominal wage. (x) Last unit of labor adds uniformly to net revenue and net cost. (y) Marginal product of the labor is at its hig

  • Q : Objective of firm in price

    The firm's objective within price discrimination is to: (w) make the community better off economically. (x) make several consumers better off economically. (y) increase revenue and profit. (z) minimize average cost.

    Q : Hike in relative price of a good I have

    I have a problem in economics on Hike in relative price of a good. Please help me in the following question. The hike in relative price of a good will quickly increase the: (i) Quantity demanded. (ii) Market supply. (iii) Rate of inflation. (iv) Quant

  • Q : Increased market demand for generic 2×4s

    Increased market demand for generic 2×4s as in demonstrated graph would result within a(n) ___________ within the price of 2×4s as well as a(n) ___________ into this lumber mill’s profit-maximizing output.: (w) increase; decrease. (x

  • Q : Levels of Poverty In 2005 year, the

    In 2005 year, the proportion of American sub-populations along with family incomes below the official poverty line was maximum for individuals: (1) 0 to 10 years old. (2) 11 to 25 years old. (3) 26 to 45 years old. (4) 46 to 65 years old. (5) more tha