If a restaurant, as a regular policy, gives a morning newspaper to each customer who orders a complete breakfast, the restaurant is
A) engaging in predatory pricing of breakfasts.
B) engaging in predatory pricing of newspapers.
C) selling breakfasts below cost.
D) distributing newspapers below cost.
E) almost certainly doing none of the above.
Question 2
If a producer can sell each and every unit he can possibly produce for 10 each, then
A) he is a price taker.
B) the demand for his product is infinitely elastic.
C) his marginal revenue curve is a horizontal line at 10.
D) all of the above are true.
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