A firm must devote people, time, and money to designing a new product. Because any firm has only limited resources, it
A) faces a trade-off, because resources used to develop one product will not be available to develop another product.
B) should wait until its competitors develop a similar product before deciding on devoting resources to its own product development.
C) is not able to develop more than one new product at a time.
D) must be certain that the product it chooses to develop will be successful or it will not be able to stay in business.
A
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Among a set of alternatives with the same benefits, an individual is said to optimize if she chooses an alternative that:
A) has the lowest total cost. B) has the highest total cost. C) has the highest indirect cost. D) has the lowest opportunity cost.
Which of the following will occur as the price of a good decreases?
A) The demand curve for that good will shift to the left. B) The demand curve for that good will shift to the right. C) The quantity demanded for that good will increase. D) Demand for that good will increase.