Which of the following statements is INCORRECT regarding the properties of information products?
A) Providing an information product entails incurring relatively high fixed costs.
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) In the long run, the producer earns sufficient revenue to cover the opportunity cost of capital.
Answer: B
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A single-price monopoly has the demand and marginal cost schedules given in the above table. What is the profit-maximizing level of output and price?
What will be an ideal response?
The primary purpose of labor unions is to
A) ensure that workers receive adequate safety training. B) negotiate with employers about wages and working conditions. C) endorse candidates and donate money to them. D) ensure that all members earn identical incomes.
If a firm fired one worker and lost 12 units of production and decides to add one more unit of capital, then to remain on the same isoquant what must be TRUE?
A) The MPK of the next unit of capital added equals 12. B) The firm must force the other workers to work more. C) The firm will experience a decline in output. D) The marginal rate of technical substitution is greater than 12.
Most of the burden of a luxury tax falls on the middle class workers who produce luxury goods rather than on the rich who buy them
a. True b. False Indicate whether the statement is true or false