Which of the following accurately describes the motivation behind predatory pricing?
a. to drive out competitors
b. to increase sales
c. to tie goods together
d. to attract new customers
a. to drive out competitors
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Refer to Figure 4-3. What area represents producer surplus at P2?
A) A + B + D B) B + D + G C) B + C + D + E D) B + D
Economies of scale may be a barrier to entry in a situation in which
A) only small-scale production can lower the per-unit cost of production. B) only small-scale production can meet the constantly changing market demand. C) only large-scale production can lower the per-unit cost of production. D) large-scale production is inefficient.
Evidence shows that governments usually impose the same import duties on the import of similar goods even if the goods fall under different product categories.
Answer the following statement true (T) or false (F)
Which of the following is a transfer payment?
a) the wages paid to a civil servant b) the government’s payment to a contractor building a bridge c) an interest payment on the national debt d) a Social Security check sent to a retiree e) the purchase of a subway token