For a Firm That Sells an Information Product, the Long-Run

question 205

Multiple Choice

For a firm that sells an information product, the long-run equilibrium exists at a point at which economic profits are

• A) negative.
• B) zero.
• C) positive.
• D) dependent upon the particular product.

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Definitions:

Potato Chips

Thin slices of potato that are fried or baked until crisp and served as a snack.

Tornado Siren

An audible siren or alarm system used to warn people in a specific area about the imminent threat of a tornado.

Benefit

An advantage or profit gained from something.

Excludable

A characteristic of a good or service that allows its owner to prevent others from using it without paying for it.