When a monopolist charges a low price to drive out competition, then charges a high price, the monopolist is engaging in:
A. a trust agreement.
B. a merger.
C. duopoly pricing.
D. predatory pricing.
Answer: D
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The market for wheat can be described at perfectly competitive while the market for pizza is better described as monopolistically competitive
Which of the following is a NOT a similarity between perfectly competitive and monopolistically competitive firms? A) Both monopolistically competitive and perfectly competitive firms produce at their efficient scale. B) Both monopolistically competitive and perfectly competitive firms are free to enter and exit the market. C) Both monopolistically competitive and perfectly competitive firms have a small market share. D) There are a large number of firms in both monopolistically competitive and perfectly competitive markets.
In the modern Keynesian model, velocity
a. varies positively with the level of the interest rate but not with income. b. varies positively with the level of the interest rate and with income. c. is constant. d. varies in the short run but is constant in the long run. e. none of the above
Which of the following statements is true?
A. A tariff is a physical limit on the quantity of a good allowed to enter a country. B. An embargo is a tax on an imported good. C. A quota is a law that bars trade with another country. D. When a nation exports more than it imports it is running a balance of trade surplus.
Marginal factor cost is
A. the change in the value of output from using an additional unit of the factor. B. the cost of using an additional unit of an input. C. the total value of factor cost divided by the one cost that is being held constant. D. the cost of an additional unit of output.