The first unit of an information product is produced at a high fixed cost. Producing additional units entails relatively
A. low external cost.
B. high social cost.
C. high average variable cost.
D. low marginal cost.
Answer: D
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What are the tools that a country can use to restrict international trade?
What will be an ideal response?
An orthodox model calls for cutting government spending, reforming the tax system to increase compliance and revenues, and limiting the creation of new money
Indicate whether the statement is true or false
Jerry spends his entire income on two goods, Bran and Tea. Every month he spends half of his income on each of these goods. Jerry's income elasticity of demand for Bran is .75. What is the income elasticity of demand for Tea?
A) 1.25 B) .75 C) 1 D) Unknown with the information provided
Autonomous consumption is defined as
A) the level of real consumption spending that is independent of real disposable income. B) the real consumption spending by the autonomous government. C) the level of real consumption spending that is equal to real disposable income. D) the consumption of foreign-made goods independent of exchange rates.