If average cost is declining,
a. marginal cost must be below average cost.
b. firms would go bankrupt if all prices were set equal to marginal costs.
c. marginal cost may be declining or increasing.
d. All of the above are correct.
d
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Once a product becomes established, network externalities may create ________ costs that make consumers reluctant to buy a new product with better technology
A) switching B) marginal C) external D) implicit
When competition is present and private ownership rights are clearly defined and securely enforced,
a. production and trade are encouraged and plunder (taking from others) is discouraged. b. people get ahead by helping others in exchange for income. c. employers will have to provide prospective employees with at least as good a deal as they could get elsewhere. d. all of the above are correct.