Happy Campers is competing in the camping market with Camping R Us. Happy Campers drops its price below its cost and, in doing so, drives Camping R Us out of the market. Once Happy Campers is a monopoly, they raise their price and enjoy economic profit. This is an example of ________.
A) market division
B) resale price maintenance
C) bid rigging
D) predatory pricing
D) predatory pricing
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How long is the long run?
A. A defined, set period of time, usually a year B. However long it would take a firm to vary all of its costs C. However long it would take a firm to have at least one variable cost D. None of these defines the long run.
Refer to the figure below.
If a price ceiling were imposed at $4, producer surplus would be:
A. $16. B. $8. C. $4. D. $24.
Investment A pays $1,200 half of the time and $800 half of the time. Investment B pays $1,400 half of the time and $600 half of the time. Which of the following statements is correct?
A. Investment A and B have the same expected value, but A has greater risk. B. Investment A has a greater expected value than B, but B has less risk. C. Investment B has a higher expected value than A, but also greater risk. D. Investment A and B have the same expected value, but A has lower risk than B.
For a given level of compensation, the ________ a firm pays for your health insurance, the ________ it will pay you in wages
A) more; more B) less; less C) less; more D) Health insurance payments and wages are not related.