Limit pricing is a strategy used by a firm to
A) deter entry.
B) enhance short run profits.
C) raise its prices.
D) lower its costs.
A
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According to this Application, the dry dust wind known as the harmattan has caused ________ of cocoa pods
A) an increase in the supply B) a decrease in the demand C) a decrease in the supply D) an increase in the demand
Suppose that when the price of aspirin rises from $2 to $3 per bottle, the quantity demanded falls from 800 bottles per day to 700 bottles per day. Over this range, the demand for aspirin is
a. elastic b. unitary elastic c. perfectly elastic d. inelastic e. perfectly inelastic
Which of the following is a source of government failure but is not typically an example of market failure?
A. Waste. B. Externalities. C. Monopoly. D. Inequity.
If the demand for a product remains the same and the supply falls,
A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.