Best Lights Wants to Prevent Bright Lights from Entering the Light

question 40

Multiple Choice

Best Lights wants to prevent Bright Lights from entering the light bulb market. If Best Lights expands its capacity, the expansion can lead to all of the following except which one?

• A)lower Best Lights' marginal cost
• B)decrease Bright Lights' profit from entering the market
• C)lower Best Lights' profit- maximizing quantity
• D)lower Best Lights' profit- maximizing price

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Definitions:

Liquid Assets

Assets that can be quickly and easily converted into cash without significant loss in value.

Full Employment Level

An economic condition in which virtually all individuals willing and able to work at prevailing wage rates are employed.

Aggregate Demand

The sum of all demands for goods and services in an economy, measured at a particular price level over a defined time interval.

John Maynard Keynes

An economist from Britain whose concepts revolutionized the field of macroeconomics and also altered the economic policy-making of states.