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:

Cilia

Tiny, hairlike tissues on the fimbriae that become active during ovulation, moving the oocyte into the fallopian tube.

Fimbriae

Fingerlike tissues that drape over the ovaries, but without necessarily touching them.

Gräfenberg Spot

Also known as the G-spot, an area located inside the vagina that is said to be capable of producing intense sexual arousal and pleasure when stimulated.