When plasma television sets were first introduced prices were high and few firms were in the market. Later, economic profits attracted new firms and the price of plasma televisions fell. This example illustrates
A) that consumers receive this new technology "free of charge" in the sense that they only have to pay a price for plasma televisions equal to the lowest production cost.
B) a decreasing-cost industry.
C) an industry with a low minimum efficient scale.
D) how fickle consumer demands are.
A
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In the scenario above, in Nash equilibrium
A) both firms cheat to produce more than the agreed amount. B) both firms comply with the agreement. C) one firm complies with the agreement while the other cheats to produce more than the agreed amount. D) both firms cheat to produce less than the agreed amount.
Which of the following could cause nominal GDP to increase and real GDP to decrease?
A) The price level falls and the quantity of final goods and services produced falls. B) The price level falls and the quantity of final goods and services produced rises. C) The price level rises and the quantity of final goods and services produced falls. D) The price level rises and the quantity of final goods and services produced rises.