Economists are skeptical about the degree to which predatory pricing is used because
a. "price wars" are rarely observed in actual markets.
b. when used as a warning to potential rivals, predation has minimal value.
c. buy-outs are less costly than predation and have no offsetting disadvantages.
d. firms can easily counter predation by "laying low" or borrowing funds.
d. firms can easily counter predation by "laying low" or borrowing funds.
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Which of the following statements is correct?
I. The Fed can periodically and without warning examine member commercial banks to ensure that they are conforming to current banking standards. II. The Fed helps the government collect certain tax revenues and aids in the purchase and sale of government securities. A) I only B) II only C) Both I and II D) Neither I nor II
The figure above shows an education market in which the government is providing households with vouchers. Excluding the voucher, what do the students pay the schools?
A) $4,000 B) $8,000 C) $12,000 D) $16,000 E) $0