Explain how Steve Jobs was able to make an economic profit with his company, Apple Computers
What will be an ideal response?
Jobs was able to make an economic profit, because he was able to create and maintain a profitable monopoly. While other companies in the industry focused on producing either software or hardware, Jobs decided Apple would produce both. This made Apple products difficult to replicate, since other producers were unable to duplicate both pieces.
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Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. What of the following could result in a movement to point b?
A) an increase in the price of bottled water B) a decrease in the price of bottled water C) an increase in the opportunity cost of soft drinks D) a decrease in the relative price of a soft drink
Which of the following is true?
a. Efficiency refers to the size of the economic pie; equality refers to how the pie is divided. b. Government policies usually improve upon both equality and efficiency. c. As long as the economic pie continually gets larger, no one will have to go hungry. d. Efficiency and equality can both be achieved if the economic pie is cut into equal pieces.