Carson Manufacturing uses sharp but temporary price cuts to discourage new competition in the widget market. Which barrier to entry is used by Carson Manufacturing?
a. Predatory pricing
b. Price skimming
c. Economies of scale
d. Deregulation
a. Predatory pricing
Predatory pricing is used by Carson Manufacturing.
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Based on the above figure, up to which level of output will Ike's Ice Cream Kitchen have increasing marginal returns?
A) only at 0 gallons B) up to 10 gallons C) up to 40 gallons D) up to 60 gallons
Explain what will happen to the equilibrium real wage and quantity of labor for each of the following scenarios, and use a graph of the aggregate labor market to show the changes
a. The government decreases income tax rates. b. The skill level of workers increases. c. A hurricane destroys a large portion of the capital stock. d. Workers increase their preference of labor over leisure. e. A technological change occurs that increases the productivity of all workers, and at the same time the government increases income tax rates. f. The overall skill level of workers decreases, and at the same time household wealth increases.
The greater the elasticity of demand for a final product, we find ________ the demand for the factor inputs
A) the greater will be B) the lower will be C) that it will not impact D) The answer cannot be determined.
If foreign firms send profits back to their industrial countries from the developing countries, developing countries will have a larger deficit on their balance of payments accounts
a. True b. False Indicate whether the statement is true or false