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Keyword: fixed costs


Aerial Predators? (6/22/2001)

Are major airlines that temporarily lower their fares to squeeze out their low-fare niche-market startup competitors guilty of predatory pricing?

Keywords: aerial predators, American Airlines, antitrust, antitrust law, average variable cost, entrants, entry, fixed costs, leader, marginal cost, monopoly, network, predatory pricing, rivals

The High-Tech Treadmill (6/22/2001)

The profit of New Economy business firms that have very high R&D fixed costs and very low marginal costs is brutally squeezed in economic downturn.

Keywords: average costs, business cycles, competitors, demand, fixed costs, hi-tech companies, investment, loss, marginal cost, new economy, obsolescence, profit, R&D, sales, software, upgrading, venture capital