If Safeway reduced its grocery prices below cost in a particular metropolitan area and kept them there until all other grocery stores in the area had been forced into bankruptcy, Walmart would almost certainly sustain huge net losses
A) in the short run and the long run because grocery stores would reappear quickly when Walmart subsequently set high prices.
B) in the short run but not in the long run because it could charge very high prices afterward.
C) in the short run but not in the long run because the policy would lower Walmart's costs of buying from suppliers.
D) only if the government enforced the antitrust laws in a fair and even-handed way.
A
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Everything else equal, if the dollar depreciates against the Chinese yuan:
A) China will stop trading with the U.S. B) China will import more from the U.S. and will export less to the U.S. C) China will export more to the U.S. and will import less from the U.S. D) the Chinese government will buy yuan from the foreign exchange market.
A typical worker's normal or average income is called
a. the life cycle. b. permanent income. c. transitory income. d. in-kind transfers.