An economic analysis of "planned obsolescence" shows that
a. monopolies have an incentive to produce shorter-lived products, even when longer-lived products can be produced at the same cost.
b. firms prefer to produce shorter-lived products, because these result in greater sales and hence larger profits.
c. competitive firms are forced to produce the product with greatest longevity, but monopolies can successfully use planned obsolescence.
d. firms will make a longer-lived product if the additional cost is less than the present value of the benefits received by consumers.
b. firms prefer to produce shorter-lived products, because these result in greater sales and hence larger profits.
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A person is dynamically consistent if:
A. his preferences over the alternatives available at some future date change as the date approaches. B. his preferences over the alternatives available at some future date do not change as the date approaches. C. he is also statically consistent. D. None of these is correct.
The demand curve for spinach shows the quantity demanded of spinach
a. only at the equilibrium price of spinach b. at each possible price of spinach c. as income increases d. as income decreases e. at each possible price of a substitute good
According to ________, entrepreneurship does not contribute anything of value to production
A) Milton Friedman B) Karl Marx C) Robert Lucas and Thomas Sargent D) John Maynard Keynes
Figure 9-4
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In Figure 9-4, if the economy is in a recessionary gap, what must happen to reach potential GDP?
A. The expenditure level must fall and/or the price level must rise. B. The expenditure level must rise and/or the price level must fall. C. The expenditure level must rise and/or the price level must rise. D. The expenditure level must fall and/or the price level must fall.