Author Question: Predatory pricing can be avoided by requiring that firms not price below average variable cost. ... (Read 74 times)

rmenurse

  • Hero Member
  • *****
  • Posts: 513
Predatory pricing can be avoided by requiring that firms not price below average variable cost.
 
  Indicate whether the statement is true or false

Question 2

In the last 40 years, merger policy has become a major way for antitrust authorities to regulate market structure.
 
  Indicate whether the statement is true or false



lauravaras

  • Sr. Member
  • ****
  • Posts: 347
Answer to Question 1

F Preventing predatory pricing is not so easy. Firms have excuses for lower prices, such as learning by doing, or selling now to win future (repeat) business, and defining average variable cost is not always easy either.

Answer to Question 2

T Issuance by the Department of Justice of merger guidelines in 1968, followed by passage of the Hart-Scott-Rodino Act of 1976 that required firms to notify the government before large mergers, allowed antitrust authorities to evaluate mergers before they occurred, and avoid mergers that would raise serious market structure questions.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

For a complete list of videos, visit our video library