Deterring entry might require a firm to
A) price their product closer to the competitive price than to the monopoly price.
B) price their product closer to the monopoly price than to the competitive price.
C) drop output almost to zero to show the consumers "who's boss."
D) drop price almost to zero to get price below marginal cost.
A
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Time is primarily a __________ that can be measured in units
a. Value b. Goal c. Resource d. Decision device
According to the kinked demand curve model, an oligopolist may face
a. more elastic demand than a monopolistic competitor. b. less elastic demand than a monopolistic competitor. c. more elastic demand if she raises her price than if she lowers her price. d. less elastic demand if she raises her price than if she lowers her price.
Positive statements are not
a. descriptive. b. prescriptive. c. claims about how the world is. d. made by economists speaking as scientists.
If policymakers expand aggregate demand, then in the long run
a. prices will be higher and unemployment will be lower. b. prices will be higher and unemployment will be unchanged. c. prices and unemployment will be unchanged. d. None of the above is correct.