Game Company manufactures two products, A and B. The following information was gathered: A B Selling price per unit $54.00 $66.00 Variable cost per unit 39.00 54.00 Total fixed costs $30,000 Assume Game Company could produce and sell any mix of products A and B at full capacity. If product A takes 2 hours to manufacture and product B takes 1 hour to manufacture and only 120,000 hours of plant capacity are available, it is best for Game Company to produce:

a. only A
b. either A or B,
c. there is no difference an equal number of A and B
d. only B

Digitalhealth electronics inc. is a company that builds diagnostic devices. it was the first company to develop a compact mri scanner by reconfiguring the components of the mri technology. this smaller and user-friendly version of the huge mri scanner created demand from small hospitals, nursing homes, and private practice doctors who were earlier dependent on the scanning machines in large hospitals. which of the following types of innovations does this scenario best illustrate? a. disruptive innovation b. incremental innovation c. radical innovation d. architectural innovation

What could cause a production possibilities curve to move down and to the left? a.) a nation loses land after being defeated in a war. b.) an increase in the use of computer technology speeds up production c.) a baby boom 20 years ago results in a large number of young adults in the population today. d.) thousands of investors from overseas invest money in a nations economy.

Which of the following statements is (are) true? i. free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent. ii. in a perfectly competitive market, long-run equilibrium is characterized by lmc < p < latc. iii. if a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.