Predatory pricing is
A. generally more effective when barriers to entry exist.
B. often effective and a relatively inexpensive means of eliminating competition.
C. the practice by which a large, powerful firm attempts to drive its competitors out of the market by temporarily setting an artificially low price.
D. legal under the U.S. antitrust laws.
Answer: C
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The U.S. federal income tax is progressive, which means that _____.
a. tax receipts grow at the same rate that income does b. tax receipts grow at the same rate that government spending does c. middle-income individuals pay more in taxes than either high-income or low-income individuals d. the tax rate decreases with increases in income e. high-income individuals are taxed at a higher rate than low-income individuals
Money eliminates the need for a coincidence of wants in trading primarily through its role as a:
A. Unit of account B. Medium of exchange C. Store of value D. Medium of deferred payment
What is the exchange rate between the dollar and the British pound if a pair of American jeans costs 60 dollars in New York and 30 Pounds in London?
A) 1.5 dollars per British pound B) 0.5 dollars per British pound C) 2.5 dollars per British pound D) 3.5 dollars per British pound E) 2 dollars per British pound
Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bert. According to Coase's theorem, one necessary condition to alleviate the externality is that
A) Al is fined by the government. B) Al has the right to leave trash and Bert cannot do anything about it. C) Bert has the right to a clean park and Al cannot leave trash. D) Either Al or Bert owns the park.