The use of sharp, temporary price cuts as a form of _________________ would enable traditional US automakers to discourage new competition from smaller electric car manufacturers.
A. natural monopoly
B. monopolistic competition
C. predatory pricing
D. oligopolistic competition
Ans: C. predatory pricing
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Normal profit is
A) part of the firm's opportunity costs. B) the same as economic profits. C) part of the firm's explicit costs. D) Answers A and B are correct. E) Answers A and C are correct.
Economies of scale are created by greater efficiency of capital and by:
a. longer chains of command in management. b. better wages for labor. c. smaller plant sizes. d. increased specialization of labor.
There is an increase in both consumer income and in the price of jet fuel, an important resource used to produce air travel. If air travel is a normal good, how will these changes influence the price and quantity purchased of air travel? The change in the price of air travel will (be) ____ and the change in the quantity purchased will (be) ____
a. indeterminate; decrease b. increase; indeterminate c. decrease; indeterminate d. indeterminate; increase
Which market type below is regarded as least competitive in Mainstream Economics?
a) Monopoly. b) Oligopoly. c) Monopolistic competition. d) Perfect competition.