An incumbent's threat to retaliate after a potential competitor enters the market will be taken seriously by potential competitors if
A) the incumbent can still earn a profit after carrying out the threat.
B) the incumbent earns greater profit carrying out the threat than by accommodating entry.
C) the potential entrant cannot earn a profit if the threat is carried out.
D) the potential entrant's profit exceeds the incumbent's if the threat is carried out.
B
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The goal of equity is fundamentally a positive issue
a. True b. False
The tolerance of bribe-taking by government officials
A) reduces economic uncertainty because all investors are aware of the practice. B) reduces economic efficiency because rules governing property rights are not regularly enforced. C) reduces government expenditures because public employees can be paid less. D) reduces the need for government to impose taxes on poor people.
The difference between the maximum amount a person would be willing to pay for a good and the amount that a person actually pays is called
a. marginal utility b. equalization principle c. auction pricing d. consumer surplus e. demand responsiveness
In 1963, the average price for a gallon of gas was about $0.30. In 2014, the average price for a gallon of gas was about $3.37. What does this data show?
a. From 1963 to 2014, the money demand curve shifted leftward. b. The demand for money has increased significantly from 1963 to 2014. c. In 1963, people carried more money in their pockets than they did in 2014. d. The interest rates were most likely lower in 1963 than in 2014.