Reducing direct costs will
A) increase economic profit.
B) decrease economic profit.
C) leave economic profit unchanged.
D) may or may not affect economic profit.
D
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30% of the electric bulbs produced in a factory in Xenonia during a year were found to be defective and could not be sold. Which of the following is likely to happen in this case?
A) Xenonia's GDP will increase. B) Xenonia's trade surplus will increase. C) Xenonia's GDP will remain unchanged. D) Xenonia's GDP will decrease. Jane stitched a prom dress which she could have bought for $180 from a store.
Predatory pricing is used primarily to:
A) discourage new firms from entering a market. B) reduce (limit) the profits of all of the firms in the industry. C) drive other firms out of a market. D) establish a minimum price all of the firms in the market will charge.