When Plasma Television Sets Were First Introduced Prices Were High

question 267

Multiple Choice

When plasma television sets were first introduced prices were high and few firms were in the market.Later, economic profits attracted new firms and the price of plasma televisions fell.This example illustrates

• A)a decreasing-cost industry.
• B)that consumers receive this new technology "free of charge" in the sense that they only have to pay a price for plasma televisions equal to the lowest production cost.
• C)an industry with a low minimum efficient scale.
• D)how fickle consumer demands are.

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Definitions:

Local Self-Government

The management and governance of local affairs by local authorities or the community, allowing for decision-making at the closest level to the citizens.

Sectional Interests

The promotion of economic and political concerns that are specific to a particular region or section of a country, often leading to conflict or competition with other regions.

National Authority

The centralized power exercised by a sovereign state over its territory and population, often manifesting through the enactment and enforcement of laws.

Separating Church and State

The principle aiming to ensure religious freedom by preventing government involvement in religious affairs and vice versa.