Refer to Figure 14-5. If Netflix lowers its price, will this deter Spotify from setting up a streaming video service?
A) no, because Spotify will make a larger profit than Netflix if it chooses to compete
B) yes, because Spotify stands to lose $1 million if it competes with Netflix
C) no, because Spotify will make a profit if it competes with Netflix
D) yes, because Spotify will make a smaller profit than Netflix if it chooses to compete
C
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Where was the largest market for the huge increase in U.S. manufacturing output in 1860–1910 located?
(a) In Europe (b) In Asia (c) Within the U.S. (d) In the Third World
Using a production possibilities curve, a technological advance that increases the amount of output for the same amount of inputs would be illustrated as a(n):
a. flattening of the curve. b. movement from one point to another point along the curve. c. outward shift of the curve. d. movement from a point on the curve to a point inside the curve.
The Effect of State and Local Government Spending on GDP
What will be an ideal response?
Serena Williams should pay someone else to mow her lawn instead of mowing it herself, unless
a. Serena has an absolute advantage over everyone else in mowing her lawn. b. Serena has a comparative advantage over everyone else in mowing her lawn. c. Serena's opportunity cost of mowing her lawn is higher than it is for everyone else. d. All of the above are correct.