Author Question: When a firm prices its goods below the marginal cost to drive away competitors, it is referred as ... (Read 116 times)

Yolanda · **on:** Jul 1, 2018

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.