Average fixed cost for an information product would
A. remain constant as quantity increases.
B. decrease constantly as quantity increases.
C. increase constantly as quantity increases.
D. first decrease and then increase as quantity increases.
Answer: B
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Assume that there is an increased demand in the United States for European wines. If all other factors are held constant, this change will result in
A) an increase in the exchange rate for euros. B) an appreciation of the dollar. C) a movement along the demand curve for euros. D) a decrease in the value of the euro.
According to the graph shown, if this economy were open to free trade, domestic producers would produce how many units?
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. 115
B. 60
C. 150
D. 90