Use the Following to Answer Questions

question 164

Multiple Choice

Use the following to answer questions:
Figure: Demand and Marginal Revenue
-(Figure: Demand and Marginal Revenue) The figure Demand and Marginal Revenue refers to a software upgrade. The producer incurred fixed costs of $10 million to produce the upgrade; the marginal cost of allowing consumers to download the upgrade is zero. What is the efficient level of output for the upgrade?

• A) 0
• B) 80,000
• C) 125,000
• D) 250,000

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Definitions:

Mnemonic Technique

A method or strategy used to enhance memory and facilitate information recall.

Proactive Interference

The phenomenon where old memories inhibit the capacity to remember new information.

Proactive Interference

The difficulty in learning new information because of the interference from existing similar information.

Retrieval Cue

A stimulus that helps a person recall or recognize stored information.