An incumbent's threat to use limit pricing if a firm enters the market
A) is credible if the firms have identical costs and market demand supports both firms.
B) is credible if the firms have different costs and market demand won't support both firms.
C) is not credible if the firms have different costs and market demand won't support both firms.
D) is cheap talk, because the other firm will enter and the incumbent will still be able to charge monopoly pricing.
B
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The labor force is the
A) total population divided by the number of employed people. B) number of employed people plus the number of unemployed people. C) working-age population minus the number of unemployed people. D) number of employed people minus the number of unemployed people. E) number of employed people in the working-age population.
The basic aggregate demand and aggregate supply curve model helps explain ________ fluctuations in real GDP and the price level
A) long-term B) unrelated C) both short-term and long-term D) short-term
In what way is better protection of the environment a possible result of successful development?
What will be an ideal response?
World War II (1941–45) bond sales
(a) were successful and purchased primarily by banks, not private individuals. (b) were successful and purchased primarily by private individuals, not banks. (c) were successful but eventually led to inflation when bondholders decided to cash them in or sell them to the Fed. (d) were not successful.