Assume a firm lowers price below marginal cost to deter entry
A) This strategy is not credible.
B) This strategy is credible.
C) This strategy is illegal.
D) This strategy is immoral.
A
You might also like to view...
If the price of lattes, a normal good you enjoy, falls, then
A) the income effect which causes you to increase your latte consumption outweighs the substitution effect which causes you to reduce your latte consumption, resulting in more lattes purchased. B) the income and substitution effects offset each other but the price effect leads you to buy more lattes. C) both the income and substitution effects lead you to buy more lattes. D) the substitution effect which causes you to increase your latte consumption outweighs the income effect which causes you to reduce your latte consumption, resulting in more lattes purchased.
If a straight line passes through the point x = 24 and y = 8 and also through the point x = 8 and y = 16, the slope of this line is
A) negative 8 divided by 4. B) seven-tenths. C) negative one-half. D) one and one-half.