Marginal cost pricing for an information product
A. would allow the firm to break even.
B. would cause the firm to expand output to increase economic profits.
C. would cause the firm to earn economic profits.
D. would cause the firm to experience economic losses.
Answer: D
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The IMF agreement forced the U.S. to exchange gold for dollars at what price?
A) $25/ ounce B) $35/ ounce C) $45/ ounce D) $55/ ounce E) $20/ ounce
Which of the following would not be considered "capital" in economics? a. A delivery van used by Federal Express
b. $500 in currency. c. A microprocessor factory d. In economics, both (a) and (c) are considered capital.
If the price elasticity of demand for a good is 5.0, then a 10 percent increase in price results in a
a. 0.5 percent decrease in the quantity demanded. b. 2.5 percent decrease in the quantity demanded. c. 5 percent decrease in the quantity demanded. d. 50 percent decrease in the quantity demanded.
A look at Big Mac prices around the world, after adjusting for differences in real GDP per capita in each country, shows
A. nearly all countries with a PPP-adjusted Big Mac price below the U.S. price. B. all developed countries with a PPP-adjusted Big Mac price above the U.S. price and all less developed countries below. C. about half of countries with a PPP-adjusted Big Mac price above the U.S. price and half below. D. nearly all countries with a PPP-adjusted Big Mac price above the U.S. price.