Would it ever make sense for a firm to charge a price at or below the cost of the product?
What will be an ideal response?
This might be an example of penetration pricing in which the firm is trying to gain market share. (Two other reasons not discussed in the text: limit pricing to prevent entry, and predatory pricing to drive out rivals.)
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A patent is a government protection that gives
A) monopolies the right to be sole producers due to economies of scale. B) consumers the right to sue when products are unsafe. C) companies the right to produce any good they choose. D) inventors exclusive rights to their product for a time.
A, B, and C have the following preferences for fruits: A: apples > bananas > peaches > pineapples B: bananas > apples > pineapples > peaches C: apples > pineapples > peaches > bananas Use the Borda Count method to determine the most preferred fruit
a. Apples b. Bananas c. Peaches d. Pineapples