The so-called "Lake Wobegon effect", where everyone in a group claim to be above average, illustrates the:

The Great Depression consisted of how many business cycles?

A) 1 B) 2 C) 3 D) 4

An incumbent's threat to use limit pricing if a firm enters the market

A) is credible if the firms have identical costs and market demand supports both firms. B) is credible if the firms have different costs and market demand won't support both firms. C) is not credible if the firms have different costs and market demand won't support both firms. D) is cheap talk, because the other firm will enter and the incumbent will still be able to charge monopoly pricing.