The Development of the Digital Video Camera, Which Replaced Film

question 175

Multiple Choice

The development of the digital video camera, which replaced film video cameras, is an example of

• A)roundabout production.
• B)derived demand.
• C)creative destruction.
• D)specialization.

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Definitions:

Normal Profit

The minimum amount of profit needed for a company to remain competitive in the market; it equals the total opportunity costs of a firm.

Economic Profits

The surplus or profit earned by a firm or individual after accounting for both explicit and implicit costs.

Purely Competitive Industry

An industry characterized by many small firms producing identical products where no single firm can influence the market price.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at given prices.