A firm cannot maintain above-normal profits over the long run
A. Unless predatory pricing occurs.
B. Without retaliation occurring.
C. Unless barriers to entry exist.
D. Without the existence of a cartel.
Answer: C
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If a nation opens up to free trade and becomes an importer of goods, which of the following is then true?
A) The nation as a whole loses. B) Sellers gain. C) Buyers gain. D) Buyers lose.
Consider the labor market depicted in the above figure. The competitive equilibrium would be for ________ hours of employment
A) 200 B) 400 C) 600 D) None of the above answers is correct.
If the price of one input changes, the firm will change its use of that input only
a. True b. False Indicate whether the statement is true or false
________ states that under certain conditions, private parties can arrive at an efficient solution without government involvement.
A. The free-rider hypothesis B. The impossibility theorem C. The Tiebout hypothesis D. The Coase theorem