What does the term "undercutting" refer to?
What will be an ideal response?
Undercutting refers to the practice of charging a price slightly lower than that charged by rival firms. This usually occurs in an oligopoly with homogeneous products.
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Fill in the blank: Producers will compare ________ benefits to ________ costs when considering how much output to produce
A) average; additional B) additional; additional C) additional; average D) average; average
If you invest $2,500 in a mutual fund with a 5 percent front-end load, _____
a. $50 will be used to pay for the sales charge and $2,000 will be invested in the fund b. there will be no sales charge and the entire $2,500 will be invested in the fund c. the fees for the fund manager will be paid only after a period of 20 years d. $125 will be paid to the fund manager and $2,375 will be invested in the fund e. a fixed amount of $250 will be paid to the fund manager every year
A two-player game has an equilibrium outcome
a. only if both players have dominant strategies b. if neither player has a dominant strategy c. whenever one player has a dominant strategy d. only with tit-for-tat strategy e. only with repeated trials