When firms earn below normal rates of return
A. they raise their prices to increase their profits.
B. they tend to leave the industry and seek profits elsewhere.
C. they are still breaking even economically.
D. they tend to stay in the industry in anticipation of other firms leaving the industry.
Answer: B
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__________ are never borrower-spenders
A) Governmental bodies B) Business firms C) Households D) All of the above can be borrower-spenders.
A pecuniary diseconomy occurs when
A. supply exceeds demand. B. higher output levels results in the same unit costs. C. higher output levels results in lower unit costs. D. an expansion of industry output increases the price of an input.
You own a local sub shop in a college town. You primarily serve two groups of people: local residents (both students and other local residents) and visitors to your town. Devise a price discrimination strategy that will increase your revenues compared to a single-pricing strategy.
What will be an ideal response?
Refer to the information provided in Table 22.5 below to answer the question(s) that follow.
Table 22.5
Refer to Table 22.5. The highest inflation rate is between the years
A. 2015 and 2016. B. 2013 and 2014. C. 2014 and 2015. D. cannot be determined from the given information.