Brett buys a new cell phone for $100. He receives consumer surplus of $80 from the purchase. How much does Brett value his cell phone?

According to John Maynard Keynes, policy makers should respond to a downturn in the business cycle by:

A. Cutting taxes and increasing government spending. B. Cutting taxes and reducing government spending. C. Raising taxes and increasing government spending D. Raising taxes and reducing government spending E. Do nothing because government activism violates Keynes' laissez faire approach.

Assume a firm lowers price below marginal cost to deter entry

A) This strategy is not credible. B) This strategy is credible. C) This strategy is illegal. D) This strategy is immoral.