Which of the following statements is false?
a. The Clayton Act allows triple damages in civil lawsuits in order to encourage lawsuits against conspiring oligopolists.
b. Many economists defend the practice of resale price maintenance on the grounds that it may help solve a free-rider problem.
c. Most economists agree that predatory pricing is a profitable business strategy that usually preserves market power.
d. The U.S. Supreme Court's view that the practice of tying usually allows a firm to extend its market power is not generally supported by economic theory.
c
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With regard to the business cycle, most modern economists believe that
a. once a recession starts, market forces are incapable of preventing the economy from plunging deeper and deeper into a depression. b. market economies will experience lengthy periods of recession pretty much regardless of what policy makers do. c. the economy's self-corrective mechanism will quickly restore full employment regardless of the choices made by policy makers. d. lower real interest rates and reductions in real resource prices will help direct an economy out of recession.
Which of the following is an example of price discrimination?
a. An online bookstore charges more for overnight shipping than standard shipping when customers buy books from it. b. Airline tickets are more expensive for first-class seats than for coach. c. Hotel rates for AAA members are lower than for nonmembers. d. All of the above are correct.