Predatory pricing is
A. the practice by which a large, powerful firm attempts to drive its competitors out of the market by temporarily setting an artificially low price.
B. often effective and a relatively inexpensive means of eliminating competition.
C. legal under the U.S. antitrust laws.
D. generally more effective when barriers to entry exist.
Answer: A
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a. household saving and government spending b. business investment and household saving c. net taxes and household saving d. government spending and business investment e. net taxes and government spending
The percentage of U.S. industrial sales produced in industries with four-firm sales concentration ratios of 50 percent or more has remained pretty much unchanged from 1895 through 1982
Indicate whether the statement is true or false
In the Keynesian model, whenever planned investment is less than planned saving
A. there will be an unplanned inventory decrease, and real GDP will eventually increase. B. the amount of planned investment will decrease, and real GDP will decrease. C. the amount of planned investment will decrease, and real GDP will remain unchanged. D. there will be an unplanned inventory increase, and real GDP will eventually decrease.
The objective of diversification is to reduce risk. How does a person diversify a stock portfolio? How is risk measured?