A firm that is threatened by the potential entry of competitors into a – McqOptions

MCQOPTIONS

1.	A firm that is threatened by the potential entry of competitors into a market builds excessproduction capacity. This is an example of
A.	a prisoners’ dilemma
B.	collusion
C.	a credible threat
D.	tit-for-tat
Answer» D. tit-for-tat

Discussion

No Comment Found

Related MCQs

According to ----------- when income increases by a small increment, it leads to increasingmarginal utility of income
A significant property of Cobb Douglas production function is that the elasticity ofsubstitution between inputs is
If all resources used in the production of a product are increased by 20 percent and outputincreases by 20 percent, then there must be:
When a firm doubles its inputs and finds that its output has more than doubled, this is knownas:
The firm’s short-run marginal-cost curve is increasing when:
If the short-run average variable costs of production for a firm are rising, then this indicatesthat:
The reason the marginal cost curve eventually increases as output increases for the typicalfirm is because:
If you know that with 8 units of output, average fixed cost is Rs.12.50 and average variablecost is Rs.81.25, then total cost at this output level is:
With fixed costs of Rs.400, a firm has average total costs of Rs.3 and average variable costsof Rs.2.50. Its output is:
Suppose a firm sells its product at a price lower than the opportunity cost of the inputs used toproduce it. Which is true?