« previous next »

Author Question: A firm charging prices below marginal cost is said to be engaged in A) price fixing. B) ... (Read 139 times)

littleanan

  • Hero Member
  • *****
  • Posts: 575
on: Jul 1, 2018
A firm charging prices below marginal cost is said to be engaged in
 
  A) price fixing.
  B) predatory pricing.
  C) a cartel.
  D) irrational behavior.

Question 2

The deadweight loss represent the sum of added consumer and producer surplus if the firm would produce the quantity where P = MC.
 
  Indicate whether the statement is true or false


tuwy

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

True . If P = MC is produced quantity increases and the deadweight loss is turned into CS and PS. This will increase total welfare.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d
J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo
A spark plug thread chaser is a low-cost tool that hopefully will not be used often, but is ... A spark plug thread chaser is a low-cost tool that hopefully will not be used often, but is ...
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
Production and Prices in Richland and Poorland Production and Prices in Richland and Poorland
Cost of Going to School Cost of Going to School
Video: Fractures Animation

For a complete list of videos, visit our video library