Which of the following is an example of strategic behaviour? – McqOptions

MCQOPTIONS

1.	Which of the following is an example of strategic behaviour?
A.	a firm builds excess capacity to discourage the entry of competitors
B.	a firm adopts the pricing behaviour of a dominant firm under the assumption that other firms will do likewise
C.	firms in an industry increase advertising expenditures to avoid losing market share
D.	all of the above are examples of strategic behaviour
Answer» E.

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?