Predatory pricing occurs when
a. firms collude to set prices. Economists are certain this practice is profitable.
b. firms collude to set prices. Economists are skeptical that this practice is profitable.
c. A monopolist decreases its prices to maintain its monopoly. Economists are certain this practice is profitable.
d. A monopolist decreases its prices to maintain its monopoly. Economists are skeptical that this practice is profitable.
d
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The proportion of income which is earned in the form of wages for labor is currently about
A. 15 percent. B. 35 percent. C. 51 percent. D. 60 percent.
For a monopoly producing any output level greater than one, the average revenue curve:
A. lies below the demand curve. B. lies above the marginal revenue curve. C. is the same as the marginal revenue curve. D. lies above the demand curve.
As a result of a decline in interest rates and a rise in household income, the demand curve for housing has shifted to the right, but has retained the same slope. Consequently, the elasticity of demand for housing
a. has declined. b. has increased. c. has remained unchanged. d. cannot be compared.
The production possibility curve (PPC) shows the ________ production of one good for ________ production level of the other good.
A. minimum; every possible B. maximum; the minimum C. maximum; every possible D. minimum; the maximum