If firms have different costs and market demand only supports the quantity the incumbent produces, then the incumbent's threat to use limit pricing
A) is credible.
B) is not credible.
C) would be illegal.
D) is unable to be determined with the information given.
D
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Suppose that the total production of an economy consists of 4 oranges and 10 candy bars, each orange sells for $0.25, and each candy bar sells for $0.50. What is the market value of production in this economy?
A. $6.00 B. $5.00 C. $0.75 D. $1.00
U.S. currency continues to be backed by the gold standard to this day
Indicate whether the statement is true or false
A pizza parlor's rent is
A) sunk in the long run. B) fixed in the long run. C) avoidable in the short run. D) variable in the short run.
If MPC = 2/3, a decrease in government purchases of $10 billion will ultimately lead to:
a. a $30 billion increase in aggregate demand. b. a $10 billion increase in aggregate demand. c. a $10 billion decrease in aggregate demand. d. a $30 billion decrease in aggregate demand.