A single firm that charges the monopoly price in the market earns $800. If another firm successfully enters the market, the incumbent's profits fall to $500 and the entrant earns $450. If the incumbent engages in limit pricing, its profits are $600. For what interest rate, i, is limit pricing a profitable strategy for the incumbent?
A. i > 1.5
B. 0.5 < i < 1.0
C. i < 0.5
D. 1.0 < i < 1.5
Answer: C
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Marge would like her husband Homer to drink less beer. All of the following are ways she could encourage Homer to drink less beer except
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Indicate whether the statement is true or false
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Answer the following statement true (T) or false (F)