Price discounts to selected buyers with the intent of driving out smaller competitors is
a. widespread in all industries
b. common in the retailing industry only
c. illegal under the Robinson-Patman Act
d. allowed if the four-firm concentration ratio is less than 50 percent
e. beneficial to consumers in the long run
C
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Perfectly competitive firms are referred to as price takers because the individual firm is so small relative to the market that its output decisions will not have any effect on the market-determined price
Indicate whether the statement is true or false
In the market for used cars, the lemons model predicts that:
A. sellers are less likely to sell low-quality cars than high-quality cars. B. sellers are more likely to sell low-quality cars than high-quality cars. C. sellers are more likely to understate the condition of their cars. D. buyers are more likely to overstate their reservation price.
The following question relates to an oligopoly market where the industry demand curve is P = 100 - Q. What will industry output be at equilibrium in this model?
What will be an ideal response?
Which of the following will not increase labor's productivity?
A. education B. technology C. new capital D. growth in output