All of the following are ways by which existing firms can deter the entry of new firms into an industry except
A) continuously producing new and improved products.
B) advertising products aggressively.
C) threatening to raise prices.
D) earning less than maximum profit.
C
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As a result of advances in technology, cellular telephones have become cheaper to produce. Illustrate the effect of this change on the market for cellular telephones
What will be an ideal response?
The short-run tradeoff between the unemployment rate and the inflation rate shown by the Phillips curve is represented in the AS-AD model by
A) rightward shifts of the aggregate supply curve. B) the downward-sloping aggregate demand curve. C) the upward-sloping aggregate supply curve. D) the vertical potential GDP line. E) leftward shifts of the aggregate supply curve.
A straight line tangent to a curved line at a point
a. crosses the curved line at that point b. crosses the curved line at many points c. has the same slope as the curved line at that point d. is steeper than the curve at all other points e. has a smaller slope than all other points on the curve
Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?