Related to the Economics in Practice on page 196. The search engine business is subject to ________, which means that as the use of the search engine increases, the long-run cost to provide additional searches on that search engine will likely fall.
A. diminishing returns
B. significant government regulation
C. diseconomies of scale
D. economies of scale
Answer: D
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Consider the Prisoners' Dilemma game, and suppose one player confesses but the other player does not confess. This outcome is
a. a Nash equilibrium. b. Pareto optimal. c. a Pareto improvement over the outcome where both players confess. d. Pareto-inferior to the outcome where neither player confesses.
Which of the following pairs of goods are likely to be considered substitutes?
A) Coffee and sugar B) Printers and printing ink C) A Ford car and public transportation D) A Nokia cell phone and a Nokia cell phone charger
Which of the following will most likely cause an increase (shift to the right) in both the long-run and short-run aggregate supply curves?
a. an increase in the national debt b. an increase in income tax rates c. a decrease in the economy's rate of investment and capital formation d. a technological improvement in robotics that substantially increases labor productivity
Suppose that in a competitive market the equilibrium price is $2.50 . What is marginal revenue for the last unit sold by the typical firm in this market?
a. less than $2.50 b. more than $2.50 c. exactly $2.50 d. The marginal revenue cannot be determined without knowing the actual quantity sold by the typical firm.