Limit 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.
A
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If production displays increasing marginal returns, then
A) total product rises by a constant amount throughout. B) each new worker hired adds more to output than previous hires. C) the firm must be adding new capital to keep boosting productivity. D) total product reaches a maximum sooner than if production displayed decreasing returns.
GDP is the market value of:
A. Resources (land, labor, capital, and entrepreneurship) in an economy in a given year B. All final goods and services produced in an economy in a given year C. Consumption and investment spending in an economy in a given year D. All output produced and accumulated over the years