Individual benefit from strategies that raise marginal costs

Assignment Help Business Economics
Reference no: EM13837013

Which of the following is a correct statement?

A. Predatory pricing is easy to prove in a court of law.

B. An incumbent firm may experience a learning curve that allows it to produce at a lower cost than a potential entrant.

C. A firm receives no individual benefit from strategies that raise the marginal costs of its rivals.

D. No individual firm can benefit from strategies that raise the fixed costs of all the firms in the industry.

Reference no: EM13837013

Questions Cloud

Monopoly produces widgets at marginal cost : A monopoly produces widgets at a marginal cost of $8 per unit and zero fixed costs. It faces an inverse demand function given by P = 38 ? Q. Suppose fixed costs rise to $200. What will happen in the market?
Expect to make the lowest profits-other things equal : Which firm would you expect to make the lowest profits, other things equal?
Outward shift in demand for capital occurs in economic boom : Outward Shift in the demand for capital occurs in an economic boom when increased construction of plants, buildings and other capital-intensive business activities requires huge outlays of investment. In this scenario, interest rates tend to rise alo..
Demand function-substitution effect of the price change : Neville has demand function q = .02m - 2p, where m is income and p is price. Income is $8,000 and he initially had to pay a price of $40 per bottle of claret. The price of claret rose to $80. The substitution effect of the price change is?
Individual benefit from strategies that raise marginal costs : Predatory pricing is easy to prove in a court of law. An incumbent firm may experience a learning curve that allows it to produce at a lower cost than a potential entrant. A firm receives no individual benefit from strategies that raise the marginal ..
Assume that total sales in the industry : Suppose the market for good X has a four-firm concentration ratio of 0.50. Furthermore, assume that total sales in the industry are $1.2 million. Based on this information, we know that sales for the largest four firms in the industry equal (in aggre..
Country pursues an expansionary fiscal policy : Capital mobility is fairly low, so the Fe curve is less shallowly sloped than the LM curve. The currency floats. What will happen if the country pursues than the LM curve. The currency floats. What will happen if the country pursues an expansionary f..
What about the real interest rate in the final market : The Chairwoman of the Federal Reserve has announced in her last conference that if the labor market continues to show signs of improvement they will continue with the tapering process and eventually the increase in the benchmark interest rate. How th..
What is the new level of output and interest rate : Consider a closed economy which can be characterized by the following equations: C = 400 + 0.8YD I = 600 + 0.1y- 1000r G = 300 T = 125 (M/P)d = 0.2Y-6000r (M/P)= 400 a. Solve for the goods market equilibrium and state the equation for the AD and IScu..

Reviews

Write a Review

Business Economics Questions & Answers

  Demand elasticity-quantity demanded

If the demand elasticity is -2.42 and has a 10 percent decrease in price, what would happen to the quantity demanded. 1. decrease by 2.4 percent 2. increase by 24.2 percent 3. decrease by 24.2 percent 4. increase by 2.4 percent

  Cousin edgar

Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying two gas stations. He reckons American consumers have come to accept the high gasoline prices, and estimates world prices for gasoline to increase even ..

  You are given the following functions in a fully

you are given the following functions in a fully competitive marketmarket demand function qd 20 - 3p market supply

  What rate reported by statistics canada every month

Which of the following is NOT a shortcoming of the civilian unemployment rate reported by Statistics Canada every month.

  Q1 an individual wants to start a business at which he

q1. an individual wants to start a business at which he expects to make 50000. getting a license for the business costs

  Was the demand elastic or inelastic

the world price of coffee rose about 100%. What was the approximate price elasticity of demand for coffee? was the demand elastic or inelastic?

  Explain how fed use of its three tools of monetary policy

Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.

  Expansionary monetary policy by the foreign country

Expansionary monetary policy by the foreign country will lead to a ______________ of the home currency, while expansionary monetary policy in the home country will lead to a ____________ of the home currency.

  Describe and derive an expression for marginal cost curve

The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q represents pairs of shoes produced per week. Describe ..

  Marginal cost is zero to provide the rides

Assuming that the marginal cost is zero to provide the rides to those in attendance, what is the best pay-per-ride price

  Illustrate the effect of increasing government

Illustrate the effect of increasing Government spending on all the macro-economic variables assuming a horizontal AS curve.

  Government often strictly regulates noise-chemical pollution

The government often strictly regulates noise and chemical pollution by industry to overcome which market failure?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd