Afirm sells a product in a purely competitive market. the marginal cost of the product at the current output level of 800 units is $3.50. the minimum possible average variable cost is $3. the market price of the product is $4. to maximize profits, the firm should
a. shut down if the minimum possible average cost is $5.25
b. shut down if the minimum possible average variable cost is $4.75
c. increase output if the minimum possible average variable cost is $5.25
d. decrease output if the minimum possible average variable cost is $4.75

Rats that received electric shocks were unlikely to develop ulcers if the

When cell phones were first entering the market, they were relatively large and reception was undependable. all cell phones were essentially the same. but as the technology developed, many competitors entered, introducing features unique to their phones. today, cell phones are only a small fraction of the size and weight of their predecessors. consumers can buy cell phones with color screens, cameras, internet access, daily planners, or voice activation (and any combination of these features). the history of the cell phone demonstrates what marketing trend?

Google started as one of many internet search engines, amazon started as an online book seller, and ebay began as a site where people could sell used personal items in auctions. these firms have grown to be so large and dominant that they are facing antitrust scrutiny from competition regulators in the us and elsewhere. did these online giants grow by fairly beating competition, or did they use unfair advantages? are there any clouds on the horizon for these firms -- could they face diseconomies of scale or diseconomies of scope as they continue to grow? if so, what factors may limit their continued growth?