If Safeway reduced its grocery prices below cost in a particular metropolitan area and kept them there until all other grocery stores in the area had been forced into bankruptcy, Walmart would almost certainly sustain huge net losses
A) in the short run and the long run because grocery stores would reappear quickly when Walmart subsequently set high prices.
B) in the short run but not in the long run because it could charge very high prices afterward.
C) in the short run but not in the long run because the policy would lower Walmart's costs of buying from suppliers.
D) only if the government enforced the antitrust laws in a fair and even-handed way.
A
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Indicate whether the statement is true or false
Each of the following are characteristics of an indifference map graph except
a. moving northeast to a new indifference curve will increase utility b. points on the same indifference curve yield equal utility c. the axes represent levels of utility d. it does not represent aggregate market behavior e. indifference curves do not intersect each other
Suppose the price elasticity of demand for good A is 1.25 . If the price of good A increases by 20%, what will be the resulting percentage change in quantity demanded for good A?
As of today, it is clear that the Fed wants to continue to increase the US money supply and keep interest rates low
a. true b. false