Predatory pricing
A. is usually quite effective at driving smaller firms out of a market.
B. is illegal under antitrust laws.
C. is a form of price leadership.
D. is often an inexpensive way for a large firm to drive smaller firms out of a market.
Answer: B
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The less liquid markets are the:
A. smaller the supply of loanable funds, and the slower the growth in the economy. B. larger the supply of loanable funds, and the slower the growth in the economy. C. smaller the supply of loanable funds, and the faster the growth in the economy. D. larger the supply of loanable funds, and the faster the growth in the economy.
In Figure 2.1, a "P" for price would go in
A. Box 2. B. Box 4. C. Box 6. D. Box 1.
If immigrant workers are complementary to native workers, then
A. native workers will be better off with open borders. B. immigrant workers will receive a higher wage than native workers. C. immigration will shift the demand for native labor to the left. D. each firm will hire only immigrants or only natives but not a mixture of the two. E. very few immigrants will find jobs.
Suppose that opportunity costs are constant and that Fred can either bake a maximum of six pies or three cakes in a day. Ethel can either produce a maximum of eight pies or two cakes in a day. Fred's opportunity cost to produce one cake is
A) one-half pie. B) two pies. C) six pies. D) four pies.