The practice of a firm setting a price so low that all firms incur losses is called
a. a tournament.
b. predatory pricing.
c. a buy-out strategy.
d. a contestable market.
b. predatory pricing.
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Bookkeeping
People have little incentive to contribute to a project if they will be able to enjoy the benefits of the finished project for free
Indicate whether the statement is true or false
If a monopolist were allowed (and able) to first degree price discrimination, there would be no efficiency/equity tradeoff so long as the government can tax the profits of the firm and redistribute the tax revenues in a lump sum way.
Answer the following statement true (T) or false (F)
Gross domestic product (GDP) is the ________ in a given time period
A) value of personal consumption expenditures, gross private domestic investment, and federal government expenditures B) sum of wage and salary compensation of employees and corporate profits C) value of all final and intermediate goods and services produced by the economy excluding those goods exported to foreign nations D) market value of final goods and services produced by the economy