An information product typically has
A. low total fixed costs and low marginal costs.
B. low total fixed costs and high marginal costs.
C. high total fixed costs and low marginal costs.
D. high total fixed costs and high marginal costs.
Answer: C
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Refer to the Article Summary. The increase in consumer spending discussed in the article summary was due in part to increases in employment and lower energy prices, which lead to an increase in disposable income
The increase in consumption resulting from the increase in disposable income will cause a(n) ________ the aggregate expenditure curve. A) movement down along B) upward shift of C) movement up along D) downward shift of
The marginal physical product of an input is the
A. addition to output from using one more unit of an input. B. extra amount of an input needed to produce one additional unit of output. C. change in average physical product, given a change in the quantity of an input. D. slope of the production indifference curve for an output made using the input.
If the long-run industry supply curve in a perfectly competitive market slopes upward, then very likely input prices will ____ as industry output expands
a. increase b. decrease c. remain constant d. first increase and then decrease
If marginal revenue and marginal cost are not equal, profit can be maximized by
a. increasing output if MR > MC. b. decreasing output if MC > MR. c. moving to the output where the slopes of TR and TC are equal. d. All of the above are correct.