Recall the Application about how cable TV providers respond to the threat of potential competitors to answer the following question(s).Recall the Application. In an effort to deter entry into its markets, cable TV providers engage in:
A. limit pricing.
B. marginal cost pricing.
C. grim-trigger strategies.
D. tit-for-tat strategies.
Answer: A
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An increase in the marginal tax rate, with the average tax rate held constant, will
A) increase the amount of labor supplied at any real wage. B) not affect the amount of labor supplied at any real wage. C) decrease the amount of labor supplied at any real wage. D) increase the amount of labor supplied at any real wage if the average tax rate is above the marginal tax rate, but decrease the amount of labor supplied at any real wage if the average tax rate is below the marginal tax rate.
Figure 11-7
The firm in Figure 11-7 is an unregulated monopolist; it will produce which of the following?
A. 175 units at a price of 7 B. 100 units at a price of 6 C. 100 units at a price of 9 D. 150 units at a price of about 7.5
The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increases prices and decreases unemployment.
Answer the following statement true (T) or false (F)
Policies that make it more difficult to fire an employee likely lead to:
A. greater unemployment, because employers will be more hesitant to hire someone. B. greater unemployment, because employees will quit more often. C. less unemployment, because everyone will value their job more. D. less unemployment, because employers will not be able to fire as many people.