Consider a market served by a monopolist, Firm A. A new firm, Firm B, enters the market and, as a result, Firm A lowers its price to try to drive Firm B out of the market. This practice is known as

Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of

A) an increase in marginal cost to attend the review session. B) a decrease in marginal benefit to attend the review session. C) a rational choice. D) an incentive to attend the review session. E) None of the above answers is correct.

Describe the channels through which open market purchases by the Fed affects output in an open economy

What will be an ideal response?