Answer:
The $18 per unit is a:
sunk cost.
Explanation:
Chang's cost incurred per unit of $18 is a sunk cost. A sunk cost is a cost that has already been incurred. It does not make a difference in a future decision. This implies the Chang may decide to correct the defect or otherwise. What decision it takes should be based on the cost and revenue that results from the next decision, and not the past decision.
Answer:
The correct answer is C. The producer's price index in that area.
Explanation:
The producer price index (PPI) is an indicator of the evolution of producer sales prices, corresponding to the first marketing or distribution channel of goods traded in the economy. The difference with the consumer price index (CPI) is explained because a good can be marketed or distributed by different intermediaries that will modify the sales price until it reaches the final consumer.
Answer:
economics a situation in which the market demand for a commodity is greater than its market supply, thus causing its market price to rise.
Explanation:
this is the definition. hope this helps.
Answer: Option D
Explanation: Network externalities are indeed an economic principle that defines the conditions in which a product or service's value increases or decreases as the number of customers increases or declines.
As the availability of an item raises the price of the product falls it becomes less valuable, according to the traditional economic theory. This is termed "positive externalities of the network" or "network influence."
Thus, somehow it creates barriers for other firms by prepairng a strong customer base for an experienced firm.
