Some economists believe that firms rarely attempt predatory pricing because it would be a very risky act

Question:

Some economists believe that firms rarely attempt predatory pricing because it would be a very risky act even if it were legal. Why may this be so?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics Principles and Policy

ISBN: 978-0538453653

12th edition

Authors: William J. Baumol, Alan S. Blinder

See More Books

Question Posted: Apr 12, 2016 07:16 AM

See More Questions

Why do some economists believe that better inventory control software may help to reduce the frequency and severity of recessions? Could differences in technology explain why recessions appear to be...
Some economists believe that in order to really understand macroeconomics, you must first understand microeconomics. How does microeconomics relate to macroeconomics?
Some economists believe that taxes have an important effect on labour supply. They argue that higher taxes cause people to want to work less and that lower taxes cause them to want to work more....
The accompanying data were read from graphs that appeared in the article Bush Timber Proposal Runs Counter to the Record (San Luis Obispo Tribune, September 22, 2002). The variables shown are the...
Financial accounting information can often be found at financial websites. These websites are useful for collecting information about a companys stock price, analysts forecasts, dividend history,...
(LO3) Lily and Peter live in California and file as married filing separately. Lily earns wages of $\( \$ $ 125,000\) working as a travel planner. Peter owns a surf shop and earns Schedule C income...
The following table gives the vapor pressure of water for various temperatures a. Plot a scatter diagram. Does it seem likely that a straight-line model will be adequate? b. Fit the straight-line...
Specifications for the computer upgrades in Problem 4 are 78 minutes and 81 minutes. Based on the data given in the problem, are the specifications being met? Estimate the percentage of process...
For the calendar year 2022, T has long term capital gains of $10,000 and short term capital losses of $4,000. what is the maximum amount of federal income tax T will be required to pay as a result of...
A good straw man learning algorithm is as follows: create a table Out of all the training examples identify which output occurs most often among the training examples; call it d. Then when given an...
During the oil crisis in the 1970s, long lines at gas stations disappeared soon after price controls were removed and gas prices were permitted to rise. Should this event be interpreted as evidence...
Firm X cuts its prices, and competing Firm Y soon goes out of business. How would you judge whether this price cut was an act of legitimate and vigorous competition or an anticompetitive act?
Water leaks out of a small hole in the side of a bucket. The hole is a distance $d$ below the surface of the water, and the diameter of the hole is much smaller than the diameter of the bucket....
Julie hits a tennis ball over a tree. The ball is 2 feet above the ground when she hits it. The quadratic function that models the height, in feet, of the ball after t seconds is f(t)=-16t^(2)+31t+2....
Why have health care organizations found it challenging to publish standardized charges on websites as directed by CMS? Question 195 options: They are required to update charges monthly. The Charge...
The function h(t)=-1.5t^(2)+30+4 represents the height, in meters, of the stomp rocket t seconds after it has been launched. When will the rocket return to its original starting height of 4 meters?
For what are Adjustments used? Group of answer choices To correct errors made in batches before they are posted. All of the above To correct errors made in posted batches. To correct accounting...
The Bolton Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 5% of accounts receivable will eventually be uncollectible. Selected account...
In Exercises, find any horizontal and vertical asymptotes and any holes that may exist for each rational function. Draw the graph of each function, including any x- and y-intercepts. y || - - 4 3x + 6
Refer to Example 9.15. Add the following functionality to this program: Allow the user to enter the cost of a gallon of gas on each trip and use a function, Cost() to calculate the cost of purchasing...
Name some companies that you think could succeed today with a globalization strategy and explain why you selected those companies. How does the globalization strategy differ from a multidomestic...
Some people who do not understand the optimal purchase rule argue that if a consumer buys so much of a good that its price equals its marginal utility, the consumer could not possibly be behaving...
John Q. Public spends all of his income on tacos and hot dogs. Draw his budget line under several conditions: a. His income is $100, and one taco and one hot dog each cost $2. b. His income is $150,...
1) Explain how a Preschool program can help to bring a sense of belonging for the child? 2) It is important for a program to provide physical environments that are age-appropriate and that support...
Your company decided to organize a special dinner to appreciate all the employees and it has been proposed that the dinner to be held in the middle of December 2021. You have been appointed as the...
Select a two-dimensional image to analyze that is either a work of art (photograph, illustration, or painting) or an advertisement. What is the FTC analysis?Use the FTC palette to break down the...

Some economists believe that firms rarely attempt predatory pricing because it would be a very risky act

Question:

Step by Step Answer:

Predatory pricing exists when a firm temporarily reduces its price below the profitmaximizi...View the full answer

Economics Principles and Policy

Students also viewed these Economics questions