Which of the following statements is INCORRECT regarding the properties of information products?
A. In the long run, the producer earns sufficient revenue to cover the opportunity cost of capital.
B. The average total cost curve for a firm that sells an information product slopes upward.
C. The firm experiences economies of operation in the short run.
D. Providing an information product entails incurring relatively high fixed costs.
Answer: B
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The above figure represents the market for teenage workers at fast-food restaurants in Kansas City
a) What is the equilibrium wage rate and employment? b) Describe the market at a wage rate of $6 per hour. c) Describe the market at a wage rate of $12 an hour. d) How would an increase in the number of young, married college graduates, who tend to eat at fast-food restaurants, affect the figure, the equilibrium wage rate, and employment?
Sam hires an attorney to present a court case. If Sam wins the case, he will receive some money. This payoff is a function of the attorney's hours and which judge is assigned the case that day
Judge A is very understanding toward people in Sam's position, but judge B is very harsh toward people like Sam. Is it possible for Sam to get the attorney to deliver the optimal amount of effort and make the attorney bear all of the risk?
Banks create money in the economy by:
A. charging higher interest on savings than loans. B. charging higher interest on loans than savings. C. loaning out all of their deposits to borrowers. D. loaning out part of each deposit, which will be redeposited by someone else.
In the modern Keynesian model, over much of its range the short-run aggregate supply (SRAS) curve is
A. downward sloping. B. vertical. C. upward sloping. D. horizontal.