Author Question: When laws and regulations prohibit firms from selling at prices less than cost, A) consumers ... (Read 97 times)

Starlight · **on:** Jun 29, 2018

When laws and regulations prohibit firms from selling at prices less than cost,

A) consumers benefit.
B) they are rarely enforced; therefore, competition is allowed to decline in the retailing industry.
C) they help maintain competition by eliminating one important advantage of large firms.
D) they must define cost arbitrarily since no firm has an incentive to sell below cost.
E) they serve as our most effective defense against predatory pricing.

Question 2

When we hear on the news, The Fed has increased interest rates today, the Fed has most likely

A) raised the required reserve ratio.
B) sold government bonds.
C) lowered the discount rate.
D) bought government bonds.