Author Question: For a firm to be engaged in predatory pricing, and for it to be successful: a. It would have to ... (Read 124 times)

Sufayan.ah · **on:** Jun 30, 2018

For a firm to be engaged in predatory pricing, and for it to be successful:
a. It would have to charge a price less than the average variable cost of production.
b. It would have to drive rivals out of the market.
c. It would have to raise its prices after rivals were driven out of the market.
d. All of the above would have to be true.

Question 2

Which of the following practices of insurers deter moral hazard?
a. Setting a uniform premium structure.
b. Requiring people to purchase the same coverage.
c. Arranging for reinsurance to cut the risk of unexpectedly large claims.
d. Conducting security checks without notice and terminating the policy whenever required.