Predatory pricing
A. is usually quite effective at driving smaller firms out of a market.
B. is illegal under antitrust laws.
C. is often an inexpensive way for a large firm to drive smaller firms out of a market.
D. is a form of price leadership.
Answer: B
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Long-run equilibrium under monopolistic competition and perfect competition is similar in that
A) price equals marginal revenue. B) price equals marginal cost. C) firms produce at the minimum point of their average cost curves. D) firms break even.
Citizens can consume more of everything in a(n)
A. open economy. B. closed economy. C. economy with many citizens. D. autarky.
Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. A quota of y?w will result in quota rent equal to areas
A. F + J. B. E + F + G + H + J. C. F + G + H + J. D. G + H.
The textbook presents the movement of rush-hour traffic as an example of social
A) chaos. B) competition. C) conflict. D) confusion. E) cooperation.