A firm charging prices below marginal cost is said to be engaged in
A) price fixing.
B) predatory pricing.
C) a cartel.
D) irrational behavior.
B
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The figure above shows a monopoly firm's demand curve. At point u in the figure, the demand facing the monopoly is
A) elastic. B) unit elastic. C) inelastic. D) less than the supply.
The process of a government intervening to maintain the value of their exchange rate after shock to their economy is known as
A) sterilization. B) preventative therapy. C) beggar-thy-neighbor policies. D) the liquidity effect.
According to the law of diminishing returns
A) the total product of an input will eventually be negative. B) the total product of an input will eventually decline. C) the marginal product of an input will eventually be negative. D) the marginal product of an input will eventually decline. E) none of the above
Which of the following are most likely to become an endangered species?
A) animals in the wild B) domesticated animals C) animals that people like to keep at home as pets D) animals that people have property rights to own