How can a firm be made better off by limiting its options?
What will be an ideal response?
By limiting its options, the firm commits to a certain strategy. The strategy is now viewed as credible by potential competitors. For example, an oversized plant commits the firm to a large level of output. Its threat to overproduce in the face of entry is now viewed as credible.
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Which of the following is consistent with the circular flow of income?
I. Goods and services flow in one direction. II. Payments and incomes flow in one direction. III. Sellers receive less than what buyers spend. A) I only B) II only C) III only D) Both I and II
What measures would likely lower infant mortality rates in the United States?
a. Prenatal care programs in low-income neighborhoods. b. Reduced drug use among expectant mothers. c. Better nutrition. d. Delaying childbearing beyond the teen-age years. e. All of the above.