If an incumbent threatens to retaliate against entry, but its profits are greater under accommodated entry than under the proposed threat, potential entrants will ignore the threat
What will be an ideal response?
True. The threat is not credible since the incumbent firm is better off accommodating entry than retaliating.
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Which of the following would be included in Germany's GNP?
A) the production of BMWs (made by a German-based company) in South Carolina B) the production of Michelin tires made in Germany by a French company and then sold directly to French consumers C) the production of BMWs in Germany D) the production of Michelin tires made in France by a French company and then sold to BMW in Germany for use in BMW cars E) Answers A and C are correct.
If a stock's dividend is expected to grow at a constant rate of 6 percent in the future
and it has just paid a dividend of $2.50 a share, and you have an alternative investment of equal risk that will earn a 8 percent rate of return, what would you be willing to pay per share for this stock? A) $2.86 B) $33.13 C) $132.50 D) $200.00
Society's resources include
a. land and labor b. labor and machinery c. land, labor, and capital d. land, capital, and money e. labor, capital, and money
Money serves as a basic yardstick for measuring economic value (a unit of account), allowing:
A. governments to restrict the issuance of private monies. B. people to hold their wealth in a liquid form. C. easy comparison of the relative prices of goods and services. D. goods and services to be exchanged with a double coincidence of wants.