Author Question: Refer to Table 14-2. Suppose Wal-Mart and Target both advertise that they will match the lowest ... (Read 42 times)

berenicecastro · **on:** Jun 29, 2018

Refer to Table 14-2. Suppose Wal-Mart and Target both advertise that they will match the lowest price offered by any competitor. What is the purpose of such a strategy?

A) to signal to each other to share the market equally
B) to signal to each other that they will not hesitate to initiate a price war
C) to signal to each other not to charge below the current low price
D) to signal to each other that they intend to charge the high price

Question 2

When the average total cost is 16 and the total cost is 800, then the number of units the firm is producing is

A) impossible to determine with the information given.
B) 12,800.
C) 784.
D) 50.