Refer to the above figure. The figure shows the cost structure of a firm producing an information product. Which curve would represent the marginal cost for an information product?
A. Curve 1
B. Curve 2
C. Curve 3
D. none of these
Answer: C
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Which of the following is true of monopolistic competition?
A) There is only one seller in this market structure. B) The product sold by each seller in this market structure is identical. C) The firms in this market structure earn huge economic profits in the long run. D) There are a large number of sellers each selling a differentiated product.
The productivity changes resulting from research and development would be best represented by:
A. an upward shift of a firm's production function. B. a downward shift of a firm's production function. C. the firm's isoquants shifting away from the origin. D. a movement to the northeast along the firm's production function.
Frieda enjoys cooking and baking. Her utility function is U(C, B) = 6C + 3B, where C is the number of hours she spends cooking and B is the hours she spends baking. What is Frieda's MU of cooking?
A. 1/6 B. 2 C. 6 D. It cannot be determined from the given information.
The best example of a standardized good would be:
A. breakfast cereal B. a handbag. C. an autographed baseball. D. corn.