Because the short-run average total cost curve slopes downward for an information product, the firm experiences
A. a downward sloping average variable cost curve.
B. long-run diseconomies of scale.
C. a downward sloping marginal cost curve.
D. short-run economies of operation.
Answer: D
You might also like to view...
The relationship between real and nominal interest rates can be expressed by:
A. real interest rate = nominal interest rate ? inflation. B. real interest rate = nominal interest rate + inflation. C. The real interest rate cannot be calculated. D. real interest rate = inflation ? nominal interest rate.
The threat of a large fine for failure to pay income taxes is an example of
A. a negative incentive to get all people to pay taxes. B. the ineffectiveness of incentives to get people to pay their taxes. C. the excessive power of the Internal Revenue Service. D. people failing to consider all the benefits the government provides them.
Chapter 1 entitled "Economics: The Study of Opportunity Cost" makes the point that we
A. do not face tradeoffs because we have limited resources. B. can avoid tradeoffs if we simply make the right decisions. C. face tradeoffs because we have limited resources. D. can produce all we want of everything we want if we just work harder.
Higher energy prices can be used to explain the productivity slowdown in the period from
A. 1948 to 1973. B. 1973 to 1995. C. 1973 to 1980. D. 1995 to 2000.