In general, a producer's marginal cost of additional units of quality ________ as more units of quality are included in the product, causing the marginal cost curve from quality improvement to be ________ sloping.
A) falls; downward
B) increases; downward
C) falls; upward
D) increases; upward
D) increases; upward
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A new car in the dealer's showroom had a sticker price of $35,900. Sally liked the car but decided she would pay no more than $32,000 for it, otherwise she would do without it. After haggling with the dealer, she purchased the car for $31,500
Did she gain any consumers surplus? If so, how much? If not, why not?
If a 10% currency appreciation results in a 10% decrease in the price of imported goods, then this is called
A) a complete pass-through. B) the Marshall Lerner condition. C) a partial pass-through. D) import inflation.
An improvement in managerial efficiency in a Fortune 500 corporation increases the marginal revenue product of all people working for the corporation. Assuming that the wage of workers who are hired in a competitive labor market remains constant, the company will
A. fire some workers. B. hire some workers. C. neither increase nor decrease the number of workers employed. D. shut down unless it can lower wages.
To maximize profits, the firm in Figure 7.3 will charge:
A. P1. B. P2. C. P3. D. P4.