In August 2008, Ethan Nicholas developed the iShoot application for the Apple iPhone 3G, and within five months had earned $800,000 from this program. By May 2009, Nicholas had dropped the price from $4.99 to $1.99 in an attempt to maintain sales
This example indicates that in a competitive market
A) earning an economic profit in the long run is extremely easy.
B) economic profits are only earned in the long run.
C) earning an economic profit in the long run is extremely difficult.
D) it is impossible to earn an economic profit in either the short run or the long run.
C
You might also like to view...
(Consider This) In part as a result of the U.S. government's ethanol program, between 2005 and 2012 the inflation-adjusted price of a bushel of corn:
A. tripled. B. rose 200 percent. C. fell 20 percent. D. collapsed to only 5 percent of its pre-2005 level.
If a developing country makes its currency fully convertible, it runs the risk of having too:
A. high levels of domestic saving and investment. B. much domestic saving and not enough domestic investment. C. low levels of domestic saving and investment. D. little foreign investment.