When a firm prices its goods below the marginal cost to drive ...

[Yolanda]

When a firm prices its goods below the marginal cost to drive away competitors, it is referred as
 
  A) price skimming.
  B) limit pricing.
  C) penetration pricing.
  D) predatory pricing.

Question 2

If the government wants to regulate a natural monopoly, it will force the firm to set price equal to
 
  A) average cost.
  B) marginal cost.
  C) marginal revenue.
  D) None of the above.

[JCABRERA33]

Answer to Question 1

D

Answer to Question 2

A

[Yolanda]

Thanks for the timely response, appreciate it

[dyrone]

Great answer, keep it coming