If the firm learns that the complicated technology can be made more stable with a few tweaks increasing the price to 15.5 million and increasing the probability of a launch to 50%. Given the new costs and probabilities of launch for the complicated software, which technology would the firm rather invest in now?
a. The simple voice-activated software
b. The complicated thought-activated software
c. Neither of the software
d. Need more information
b
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Which of the following is NOT a reason why natural GDP might fall as a result of a supply shock?
A) The production function shifts downward. B) There might be a voluntary decline in the supply of labor in response to the decline in real wages. C) The supply of labor is a function of the expected wage rate. D) none of the above
When a person takes cash to the bank and deposits it in a checking account,
a. that act directly and immediately reduces the amount of money in the economy. b. that act directly and immediately increases the amount of money in the economy. c. that act directly and immediately changes one kind of money into another kind of money. d. None of these.
Consolidation activity in the hospital industry:
a. has slowed due to federal government legislation. b. has occurred almost exclusively at the local level. c. occurs for the same reasons that cause consolidation in other industries. d. has created a large number of nationwide for-profit hospital chains.
Refer to the accompanying graph. If this firm is a price taker and the price of each unit of output is $15, then this firm should:
A. shut down in the short run. B. lower its output to decrease its marginal cost. C. raise its price to increase its revenue. D. produce 60 units of output.