If a monopolist faces entry by a potential rival, investing to lower its marginal cost
A) is a credible way to deter entry.
B) is not a credible threat.
C) is credible but will not deter entry.
D) will not occur, even when there are no barriers to entry.
A
Economics
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Explain why depositing cash into a checking account does NOT change the money supply
What will be an ideal response?
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Suppose money supply (M) = $4,000, real GDP (Y) = $30,000, and nominal GDP = $60,000. Calculate the value of velocity and the price level.
A) V=7.5;P=2 B) V=15;P=2 C) V=7.5;P=0.5 D) V=15;P=15
Economics