Best Lights wants to prevent Bright Lights from entering the light bulb market. If Best Lights advertises that it will always undercut any competitor's price, the effect of advertising ________ Best Lights' profits due to its cost and ________ Best Lights' profits due to a(n) ________ in its demand.
A) decreases; increases; increase
B) decreases; decreases; decrease
C) increases; increases; increase
D) decreases; decreases; increase
A) decreases; increases; increase
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Recall the Application. If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, real wages in country B will tend to ________ and employment in country B will tend to ________
A) decrease; increase B) increase; decrease C) increase; increase D) decrease; decrease
Population grew prodigiously during the colonial period. What was/were the most important factor(s) fueling this increase?
(a) Immigration (b) Relatively low mortality and high birth rates (c) Relatively high mortality combined with high birth rates (d) Immigration and high birth rates
According to the Coase theorem, in order to solve a negative externality problem efficiently,
a. the property right must be assigned to the party with the least-cost alternative b. the property right must be assigned to the victim of pollution c. transaction costs must be high d. transaction costs must be low e. property rights must be determined by the courts
The "urban consumers" that the CPI is based on includes anyone living in a city of:
A. 100,000 or more. B. 2,500 or more. C. 50,000 or more. D. 150,000 or more.