Limit pricing occurs when a firm sets price:
A. equal to marginal cost.
B. equal to average cost.
C. at different amounts for different groups of consumers.
D. so low that other firms are prevented from entering the market.
Answer: D
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Suppose the supply of farmland is infinitely inelastic and the demand for land is downward sloping but inelastic at the current equilibrium
If the supply curve shifts leftward (e.g., some farmland is permanently converted to other uses), what happens to the aggregate economic rents in this market? A) Decrease B) Increase C) Remain the same D) We do not have enough information to answer this question.
For each size of plant a manufacturer could build, there is a different
a. long-run average fixed cost curve b. long-run average variable cost curve c. short-run average total cost curve d. long-run average total cost curve e. long-run marginal cost curve
The substitution effect occurs when a good becomes more expensive and people seek out alternative goods
a. True b. False Indicate whether the statement is true or false
If "minority" means less than 50%, then whites are a minority.
Answer the following statement true (T) or false (F)