The first unit of an information product is produced at a high fixed cost. Producing additional units entails relatively low
A) total costs.
B) marginal and average variable cost.
C) external cost.
D) social cost.
B
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Currently the NAFTA nations do not meet the conditions for an optimal currency area. What are the two main reasons why?
What will be an ideal response?
What is a bond buyer promised when she buys a bond?
In this graph, in order for expansionary policy to put equilibrium on the LRAS curve, ______.
a. prices and output must increase
b. prices must decrease, and output must increase
c. prices and output must decrease
d. prices must increase, and output must decrease
All other factors held constant, when McDonald's raises the price of its Big Mac by 20 cents,
A. there is likely to be an increase in demand for Taco Bell's Chalupas, assuming the Big Mac and Chalupas are substitutes. B. there is likely to be an increase in demand for McDonald's Big Mac, assuming the Big Mac and Chalupas are substitutes. C. there is likely to be a decrease in demand for Taco Bell's Chalupas, assuming the Big Mac and Chalupas are substitutes. D. there is likely to be a decrease in the quantity of Taco Bell's Chalupas demanded, assuming the Big Mac and Chalupas are substitutes.