Predatory pricing is a well-defined antitrust offense
Indicate whether the statement is true or false
F It is difficult to prove predatory intent by a seller, partly because costs are hard to know precisely. Other arguments, such as learning by doing or establishing a presence in the market to capture future sales, can also be used to justify the pricing.
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A perfectly competitive firm will shutdown when the price is just below the minimum point on the
A. marginal revenue curve. B. average variable cost curve. C. average fixed cost curve. D. marginal cost curve. E. average total cost curve.
An outside lag is the time period it takes economists to formulate a stabilization policy
Indicate whether the statement is true or false
At the point where marginal cost equals average variable cost,
a. b and c. b. marginal cost is rising. c. average total cost is at its minimum. d. average variable cost is falling. e. there is no total cost.
International free trade:
A. allows everyone involved to gain surplus. B. may have individual winners and losers of surplus within a country. C. creates surplus only for the producers in a country. D. creates surplus only for the consumers in a country.