When a firm increases output and accepts a lower price to keep new firms from entering, it is engaging in:
A. limit pricing.
B. cartel behavior.
C. collusion.
D. price fixing.
Answer: A
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How do the wages in the United States compare to those in northern Europe?
A. U.S. wage rates are higher than those of all northern European nations. B. Northern Europe’s average wage rates are higher. C. U.S. wage rates are higher than those in Germany and the Netherlands. D. They are similar.
The ratio of nominal GDP to money supply is referred to as:
A) velocity. B) inflation ratio. C) Fischer's ratio. D) price index.
If the price of a good rises by 10% and the quantity purchased falls by 15%, then demand for the good is ________ and total spending on the good will ________
A) elastic; increase B) inelastic; increase C) elastic; decrease D) me and so inelastic; decrease
A perfectly competitive firm's short-run supply curve is its marginal cost curve below its average variable cost curve
a. True b. False Indicate whether the statement is true or false