Which of the following is an example of predatory pricing?
A. In order to buy Microsoft Windows, you must also purchase Internet Explorer.
B. Bus rides are cheaper for senior citizens than for other people.
C. Prices are set low enough to drive other firms out of a market.
D. Prices are set just high enough to prevent other firms from entering the market.
Answer: C
You might also like to view...
An example of an intermediate good would be ________.
A. paper and ink bought by a publishing company B. groceries bought by a dentist for his family C. bricks bought by a homeowner who plans to build a patio in his backyard D. cars bought by a car-rental company
Keynes used the phrase animal spirits to describe the feelings of entrepreneurs, and he argued that these feelings affect investment decisions.
Answer the following statement true (T) or false (F)
If beans are inferior goods, a decrease in income will
A. cause beans to sell at a lower price. B. increase the production of beans. C. shift the demand curve for beans to the left. D. shift the demand curve for beans to the right.
Use the following graph to answer the next question.
At the profit-maximizing level of output, the profit earned by the perfectly competitive firm is given by the area
A. BCFG. B. 0AHE. C. ABGH. D. ACFH.