Suppose that a firm successfully introduces a highly profitable new product. If this new product offers less marginal utility per unit to consumers than existing substitute products, then the:
A. laws of economics have been violated.
B. new product must have increasing, not diminishing, marginal utility.
C. existing products were being produced at a loss.
D. new product has a lower price than the existing substitute products.
Answer: D
Economics
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Refer to Table 9-12. With trade, what is the total gain in sword production?
A) 40 B) 60 C) 100 D) 200
Economics
The short-run aggregate supply curve is most likely to shift down (to the right) when actual output is:
A. not equal to potential output, regardless of whether it is above or below. B. less than potential output. C. equal to potential output. D. greater than potential output.
Economics