In general, individuals and nations should specialize in producing goods ________ other individuals or nations.
A. that they can produce more quickly than
B. that they can produce less quickly than
C. for which they have a higher opportunity cost compared to
D. for which they have a lower opportunity cost compared to
Answer: D
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If the "Marginal Congestion Cost" for a public good is constant then the optimal number of users is infinite
a. True b. False
_________ means the expression by cultural and ethnic groups of their heritage
a. Multiculturalism b. Socialization c. The 5 S Concept d. Apartheid
Import bans, import quotas, voluntary export restraints (VERs), and tariffs on goods all:
A. increase imports and raise prices for consumers. B. reduce imports and prices for consumers. C. reduce imports and raise prices for consumers. D. increase imports and reduce prices for consumers.
A firm that is first to the market with a new product frequently discovers that there are design flaws or problems with the product that were not anticipated. How do these problems affect the innovating firm?
A) The firm is protected by a first-mover advantage: initial design flaws tend not to harm a firm significantly because consumers resist changing products for fear of incurring high switching costs. B) They reduce profits for the new innovations and open the door to competitors who can enter the new market with a better product. C) The firm's cost increases as it improves the product but it will not be able to raise its price for fear of alienating customers. Consequently, its profits will erode although its market share remains secure. D) Because these design flaws were not anticipated, consumers tend to be more forgiving and are likely to remain loyal to the company and its products.