What does the term undercutting refer to? What will be an ...

[dmcintosh]

What does the term undercutting refer to?
 
  What will be an ideal response?

Question 2

At a price of 4 in the above figure
 
  A) the equilibrium quantity is 400 units.
  B) there is a surplus of 200 units.
  C) the quantity supplied is 400 units.
  D) there is a shortage of 200 units.

[elyse44]

Answer to Question 1

Undercutting refers to the practice of charging a price slightly lower than that charged by rival firms. This usually occurs in an oligopoly with homogeneous products.

Answer to Question 2

D

[dmcintosh]

TYSM

[essyface1]

Thanks for the timely response, appreciate it