In a duopoly, one firm's low-price guarantee:
A. eliminates the other firm's incentive to undercut the first firm's price.
B. encourages the other firm to cut its prices.
C. guarantees that consumers will pay the lowest price possible.
D. is ineffective because firms always have an incentive to break their agreements.
Answer: A
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Which of the following is subtracted from net national product to arrive at national income?
a. net income of foreigners b. depreciation c. indirect business taxes d. transfer payments
Suppose that for a monopolist, MR = MC = $10 and P = $15 at the profit-maximizing level of output. At this level of output, the firm
a. is earning a profit b. will shut down if AVC > $15 c. is making $5 profit on each unit sold d. will shut down if ATC > $15 e. is losing $5 per unit produced
Which of the following is NOT a type of discrimination investigated by the EEOC?
a. gender b. disability c. education d. religion
The table above shows the total product schedule for The X Firm. Increasing marginal returns occur until the ________ worker because ________
A) 4th; the marginal product of the 4th worker exceeds the 3rd worker, but not the 5th worker B) 5th; output is maximized C) 5th; output declines with the 6th worker D) 3rd; the average product of labor is also increasing E) 4th; the average product of labor is also increasing