In the long run, the price of information products in monopolistically competitive markets will be equal to

In the food and kindred products industry, it is estimated that the elasticity of output with respect to labor is 0.43 and the elasticity of output with respect to capital is 0.48. These two measures indicate that the primary metals industry is characterized by

A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) no returns to scale.

Rick finds a great Internet deal on an all-inclusive vacation rental in the Tropics for $1200, and immediately places a $1000 nonrefundable deposit on it. He later learns that the dates he planned to go are right in the middle of hurricane season, and it is likely to be miserable and potentially dangerous weather the entire time. Rick decides he cannot waste the $1000 and takes the trip anyway. While sitting in the rain, miserable, Rick realizes he should have:

A. ignored his sunk cost of $1200 and skipped the trip. B. ignored his sunk cost of $1000, and skipped the trip. C. hired a lawyer for $1000 to go to court and try to get his deposit back. D. hired a lawyer for $1000 to sue the travel agency.