Refer to Table 2-9. If the two countries specialize and trade, who should export sailboats?
A) There is no basis for trade between the two countries.
B) Guatemala
C) Honduras
D) They should both be importing sailboats
Answer: C) Honduras
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What effect does the televising of the Super Bowl have on the cost to the National Football League of giving someone a ticket to the game?
A) It has no effect because all the costs of playing the game are sunk costs. B) It has no effect on the cost because the demand doesn't affect cost. C) It lowers the cost because fewer people will want to buy tickets. D) It raises the cost because fewer people will want to buy tickets.
A network effect exists whenever
A) a firm's willingness to produce a particular good or service is influenced by the costs of inputs it must utilize in order to manufacture the item. B) a consumer?s willingness to purchase a particular good or service is influenced by how many others also buy or have bought the item. C) a firm's willingness to purchase a particular factor of production depends on the other types of inputs it utilizes to manufacture an item. D) a consumer's willingness to purchase a particular good or service is influenced by the prices of other complementary or substitute items.