In which of the following scenarios would a predatory pricing scheme have the greatest chance of success, all else constant?
A) The predatory price is set well below cost, many rivals are likely to enter after the strategy ends, and profits can be recouped only over a relatively long period of time.
B) The predatory price is set well below cost, relatively few rivals are likely to enter after the strategy ends, and profits can be recouped in a relatively long period of time.
C) The predatory price is set just below cost, many rivals are likely to enter after the strategy ends, and profits can be recouped in a moderate period of time.
D) The predatory price is set just below cost, relatively few rivals are likely to enter after the strategy ends, and profits can be recouped in a very short period of time.
D
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The production of steel in a factory generates a negative externality. A per-unit tax on the factory that equals ________ of steel production will internalize the externality entirely
A) the marginal private cost B) the marginal social cost C) the marginal external cost D) the marginal external benefit
If the demand curve is given by Q = a + bp, then a is
A) negative. B) the quantity demanded when price is zero. C) the slope of the demand curve. D) measured in money.
Evidence in support of the hypothesis that unions increase the productivity of union workers is
A) the fact that union wages are greater than nonunion wages. B) there is an excess supply of labor at the union wage rate. C) that unionized firms face lower turnover rates than nonunion firms do. D) that most contracts are settled without a strike.
Firms achieve productive efficiency in the long run by
a. striving to minimize fixed cost b. striving to maximize revenue c. producing at their minimum long-run average cost d. producing at their minimum long-run marginal cost e. producing the output consumers want most