An incumbent's threat to retaliate after a potential competitor enters the market will be taken seriously by potential competitors if
A) the incumbent can still earn a profit after carrying out the threat.
B) the incumbent earns greater profit carrying out the threat than by accommodating entry.
C) the potential entrant cannot earn a profit if the threat is carried out.
D) the potential entrant's profit exceeds the incumbent's if the threat is carried out.
B
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According to U.S. law, domestic firms can obtain protection from foreign dumping, even if this protection is harmful to overall U.S. welfare
Indicate whether the statement is true or false
The stockholder-lender conflict generally becomes greater
A) the smaller the firm. B) the larger the firm. C) the more the firm borrows from banks. D) the less the firm borrows from banks.
If an economy is experiencing both full employment and price stability, within the Keynesian model, a major tax reduction probably would cause
a. an increase in unemployment in the near future. b. an increase in the general level of prices unless government expenditures are also reduced. c. an increase in the interest rate since individuals will reduce their savings in response to the tax cut. d. a decrease in consumption unless the expected budget deficit is financed by selling bonds to foreigners.
Which determinant of demand changes in the personal computer market as more individuals become interested in "surfing the Internet"?
A. Number of buyers. B. Expectations. C. Cost of factors of production. D. Income.