Predatory pricing will be most effective when the costs structures of the firms in an industry, including potential entrants into the market, are identical or at least very similar
Indicate whether the statement is true or false
FALSE
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An anticipated change in the money supply will result in a(n) __________ level of economic activity and a __________ price level
A) increased; higher B) decreased; higher C) unchanged; lower D) unchanged; higher
If consumers switch away from eating margarine at the same time that the number of margarine suppliers increases, then:
a. these two effects cancel each other out and there is no change in the margarine market equilibrium. b. the demand curve shifts left and the supply curve shifts right. c. there is a margarine price increase. d. there is an excess demand for margarine. e. the equilibrium quantity of margarine must increase.
If the government wants to encourage spending on research and development, it should
a. reduce patent protection so many individuals can use new products in their own research b. shorten the number of years during which a developer has exclusive patent rights to market an invention c. increase the number of years during which an inventor has exclusive patent rights to market an invention d. raise tax rates on corporate profits to raise money for the research e. encourage firms and households to spend money instead of saving it
Price controls on resources generally lead to surpluses.
Answer the following statement true (T) or false (F)