An increase in the demand for music downloads indicates that more music downloads are
A. demanded because sellers are putting music downloads on sale.
B. demanded because music download prices have decreased.
C. demanded even if prices of music downloads stay the same.
D. demanded because sellers are selling more music downloads.
Answer: C
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
If we were the only two people in the world and I like bananas while you hate them, efficiency demands that I get all bananas.
Answer the following statement true (T) or false (F)
When there are barriers to entry, a profit-maximizing firm already in the industry can charge any price it wants, even in the long run
a. True b. False
A firm could not be engaged in successful predatory pricing if: a. It charged prices greater than the average variable cost of production. b. It drove rivals out of the market
c. It raised its prices after its price cutting campaign. d. None of the above is true.