There is no incentive for additional producers of an information product to enter the industry when the price charged for these products by each firm already in the industry is equal to
A) marginal cost.
B) average total cost.
C) average fixed cost.
D) average variable cost.
B
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Keynesian economics refers to the perspective that the business cycle represents
A) equilibrium. B) disequilibrium. C) long-run macroeconomic fluctuations. D) short-run macroeconomic stability.
Which of the following cultural events likely increased the demand for the associated product?
A) the banning of cigarette advertising on television B) the inclusion of Reese's Pieces in the movie E.T. C) increased environmental awareness about the impacts of sport utility vehicles (SUVs) D) concerns over "Mad Cow" disease in beef
When an entrepreneur invests his own financial capital in order to start a business
A) the opportunity cost of capital should be included in the economic cost of doing business. B) the investment is treated as a fixed cost, so it should not be considered as a cost of doing business. C) the firm's economic profits will exceed its accounting profits. D) the accounting costs increase because the funds would otherwise have to be borrowed.
The rate of product transformation (RPT) measures the ability of:
a. a consumer to trade one good for another while still maximizing his or her utility. b. a firm to substitute one input for another and still maintain the same production level. c. society to substitute the production of one good for another while still using a fixed supply of inputs efficiently. d. a firm to produce a final good while starting with only natural resources.