In August 2008, Ethan Nicholas Developed the IShoot App for the Apple

question 16

Multiple Choice

In August 2008, Ethan Nicholas developed the iShoot app for the Apple iPhone 3G, and within five months had earned $800,000 from this program.By May 2009, Nicholas had dropped the price from $4.99 to $1.99 in an attempt to maintain sales.This example indicates that in a competitive market,

• A)earning an economic profit in the long run is extremely easy.
• B)earning an economic profit in the long run is extremely difficult.
• C)it is impossible to earn an economic profit in either the short run or the long run.
• D)economic profits are only earned in the long run.

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Definitions:

Wage Survey Data

Information gathered about salary rates and compensation for various jobs, used to benchmark and set salaries.

Trade Associations

Organizations founded and funded by businesses that operate in a specific industry to protect and promote their common interests.

Non-Systematic

Lacking a fixed plan, method, or coherence, often in a way that makes something less effective or reliable.