Answer:
B. List Operational Costs
Explanation:
Answer:
The correct answers are letters "C" and "D": The company significantly raised its prices after its rivals were forced out of the market; The company deliberately set its prices below its average variable costs.
Explanation:
Predatory pricing is the set of actions a company carries out to establish the price of its goods or services below the market price -even below the firm's costs, which might be beneficial for consumers in the short term but goes against them in the long run since most companies affected tend to exit the industry, leaving the predatory company alone as a monopoly so it can change the price of the good or service offered at will.
Answer:
Identifying or stating the problem
Explanation:
Answer: Money has three primary functions. It is a medium of exchange, a unit of account, and a store of value: Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.
Answer:
The correct answer is: An increase in the negative externality caused by cigarette smoking.
Explanation:
If government pays farmers not to plant tobacco this lead to a decrease in tobacco production. This will further cause the supply of a tobacco to decrease. As a result, the supply curve of tobacco will shift leftwards.
A decrease in supply of tobacco will increase its price. As tobacco is used to make cigarettes, the increase in its price will increase the price of producing cigarettes. As a result, the supply of cigarettes will decrease causing a leftward shift in the supply curve of cigarettes.
As the supply decreases, the price of cigarettes will decrease. People will consume less quantity of cigarettes. This will cause a reduction in the negative externality caused by smoking cigarettes.
