Assume that in an effort to discourage competitors, firm X has lowered its price below its average total costs of production. This is an illustration of the limit pricing form of strategic entry deterrence
Indicate whether the statement is true or false
FALSE
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An effective Federal Reserve operating target is a target that is reliably linked to
A) inflation and unemployment rates. B) other operating targets. C) fiscal policy. D) open market operations.
A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building he owns and currently rents for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What is the minimum revenue he must earn per year in order for it to be worth his while to open
his sushi bar? a. $26,000 b. $66,000 c. $78,000 d. $52,000 e. $72,000
A Lorenz curve measures the ________ on the horizontal axis
A) cumulative percentage of family income B) cumulative percentage of family wealth C) cumulative percentage of families D) demand of families on welfare
Which of the following is true of a recessionary period?
a. It is usually accompanied by an improvement in the value of an economy's currency. b. It is usually accompanied by low levels of inflation c. It is usually accompanied by a dramatic decline in the stock of inventories. d. It usually lasts for a few months. e. It leads to a drastic decline in government spending.