________ occurs when a large, powerful firm drives smaller firms out of the market by temporarily selling at an artificially low price.
A. A dominant strategy
B. A prisoners' dilemma
C. Predatory pricing
D. A maximin strategy
Answer: C
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Refer to Figure 21.1. The highest 20% of the population earn ________ of total income
A) 40% B) 44% C) 60% D) 80%
If a good has an income elasticity of demand greater than one, one might classify that good as
A) a necessity. B) a luxury. C) unusual. D) inelastic.
The demand for computers increases. As a result
A) the quantity demanded of workers increases, the wage rate rises, and the supply of labor increases. B) the demand for workers increases, hiring increases, but wages stay the same since each firm faces a horizontal supply curve of labor. C) the wage rate increases in the industry and the quantity demanded of workers falls. D) the wage rate increases in the industry and the quantity supplied of workers increases.
A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 per wash, and the price of workers is $60 per day. The car wash should hire a fifth worker if it would increase total production to at least:
a. 92 cars per day. b. 100 cars per day. c. 104 cars per day. d. 110 cars per day.