Refer to the graph below.
In the 1980s, digital publishing reduced the cost of producing books. Assuming no change in the cost of producing DVDs, which of the shifts reflects this change in technology?
A. I
B. II
C. III
D. IV
Answer: D
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In the above table, if the firm produces 2 units of output, it will
A) make an economic profit of $9. B) make an economic profit of $60. C) incur an economic loss of $9. D) incur an economic loss of $60.
Efforts by firms to secure patents increase the amount of competition in the affected markets
Indicate whether the statement is true or false
Currency appreciation would occur in a nation if
A. the demand for the nation's exports increases. B. the demand for the nation's imports increases. C. real interest rates in the nation decrease relative to the rest of the world. D. the inflation rate is higher within the nation than in the rest of the world.
By creating a perception of more product differentiation than is accurate, advertising can make a firm’s demand curve ______.
a. vertical b. horizontal c. more elastic d. more inelastic