Predatory pricing can be avoided by requiring that firms not price below average variable cost
Indicate whether the statement is true or false
F Preventing predatory pricing is not so easy. Firms have excuses for lower prices, such as "learning by doing," or selling now to win future (repeat) business, and defining average variable cost is not always easy either.
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A miniature golf course is a good example of where fixed costs become relevant to the decision of when to open and when to close for the season
a. True b. False Indicate whether the statement is true or false
The equilibrium price of a good or service is the price
a. at which the current quantity supplied by producers is equal to the potential output. b. fixed by the government so that producers do not over produce and consumers do not over purchase. c. at which all consumers can afford to purchase units of a good or service as long as they provide them with any value. d. at which the quantity supplied by producers is equal to the quantity demanded by consumers.
Which of the following statements is most correct?
A. We cannot compute either the ex post or ex ante real interest rates accurately. B. We can accurately compute the ex ante real interest rate but not the ex post real rate. C. We can always compute the ex post real interest rate but not the ex ante real rate. D. None of the statements are correct.
A computer manufacturer sells laptops to retail stores for $450 each. If the manufacturer pays $200 for all of the components in each laptop and $75 in wages to it's workers, the value added to each computer by manufacturing is
A. $250. B. $75. C. $175. D. $450.