When a credit card company offers different services with its card, like travel insurance for air travel tickets purchased with the credit card or product insurance for items purchased with the card, the credit card company is trying to:
A. create a barrier to entry for competing firms.
B. create a perfectly competitive market in which to sell its credit card.
C. differentiate its credit card from those offered by other companies.
D. shift the demand curve for competing firms to the right.
Answer: C
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_____ is a measure of the total satisfaction derived from consuming a quantity of some good or service
a. Disutility b. Diminishing marginal utility c. Total utility d. Marginal utility e. Ordinal utility
When the long-run average total cost curve is increasing, this means that there are
a. economies of scale b. diseconomies of scale c. constant returns to scale d. diminishing returns e. some fixed factors of production
How does the phenomenon of diminishing returns to capital explain the catch-up effect?
A decrease in input costs to firms in a market will result in a(n)
a. decrease in equilibrium price and an increase in equilibrium quantity.
b. decrease in equilibrium price and a decrease in equilibrium quantity.
c. increase in equilibrium price and a decrease in equilibrium quantity.
d. increase in equilibrium price and an increase in equilibrium quantity.