How can a firm be made better off by limiting its options?
What will be an ideal response?
By limiting its options, the firm commits to a certain strategy. The strategy is now viewed as credible by potential competitors. For example, an oversized plant commits the firm to a large level of output. Its threat to overproduce in the face of entry is now viewed as credible.
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In the United States, the labor-force participation rate since 1960 has been
A) increasing for females. B) unchanged for both males and females. C) declining for females. D) declining for both males and females.
In economics, money is
A) a financial instrument backed by some precious metal such as gold or silver. B) whatever the government defines it to be. C) anything that people generally accept in exchange for goods and services. D) another term for income.
The financial chaos of the antebellum period clearly impeded economic growth and development in the long run
Indicate whether the statement is true or false
Which of these is an example of a controllable factor for a firm that sells pizzas
a. The price of the pizza b. The delivery rates of the pizza c. The quality of the wings sold by the street vendor across the street d. Both A & B