If a firm that produces an information product uses marginal cost pricing, then the firm
A) will earn negative profits.
B) will earn profits equal to zero.
C) will earn positive profits but could earn a higher profit by using a different method.
D) will maximize profits.
Answer: A
Economics
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Refer to the scenario above. Infi Cor
A) $31 billion B) $21 billion C) $12 billion D) $9 billion
Economics
If the market price is $50 per unit for a good produced in a perfectly competitive market and the firm's average total cost is $52, then the firm
A) incurs an economic loss of $2 per unit. B) makes an economic profit of $2 per unit. C) makes zero economic profit. D) incurs a total economic loss of $52. E) More information is needed to determine the firm's economic profit or loss per unit.
Economics