Dan is the pricing director for a near monopoly. He has been warned to avoid predatory pricing. Which of the following actions does Dan need to avoid?
a. pricing products at exactly the same level as competitors
b. charging higher prices when raw material costs increase
c. charging different prices to different customers based on their occupation
d. lowering prices to bankrupt his competitors, then raising prices dramatically
d. lowering prices to bankrupt his competitors, then raising prices dramatically
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If Cassie's Coffee House purchases 33 cents worth of ingredients and spends 36 cents on wages per cup of coffee to produce an 89 cent cup of coffee, then Cassie's Coffee House's contribution to GDP is ________ per cup of coffee
A) 20 cents B) 33 cents C) 36 cents D) 56 cents
In the aggregate demand-aggregate supply framework, how does an increase in the price level affect potential GDP?
What will be an ideal response?
Which of the following would cause an increase in the velocity of money?
a. An increase in the use of credit cards b. An increase in the money supply c. An increase in the demand for money d. A decrease in the rate of interest e. A decrease in nominal GDP and a constant money supply
Based on our understanding of the model presented in Chapter 3, we know with certainty that an equal and simultaneous reduction in G and T will cause
A) an increase in output. B) no change in output. C) a reduction in output. D) an increase in investment.