Question

117Decreasing marginal opportunity cost means that the production possibility curve is _______ so that for every additional unit of one good given up you get ________ units of the other good.

bowed in, less and less

bowed out, more and more

bowed in, more and more

bowed out, less and less

118

Compared to relationship enterprises, virtual corporations are more likely to be

global in scope.

oligopolistic.

short term and temporary.

220 Setting a high price when a product is first introduced and then gradually lowering its price over time is referred to as

lasting and stable.

transfer pricing

skimming

prestige pricing

value pricing

Answer 1

117.Ans: bowed in, more and more.

Explanation:

When the opportunity costs decreases then the production possibilities curve will become convex or bowed in.

When the opportunity costs increases then the production possibilities curve will become concave or bowed out.

118.Ans: short term and temporary.

119.Ans: skimming

Explanation:

Setting a high price when a product is first introduced in order to earn more profit becuase there are less competitor in the market and innovation of the new product. After a period of time the firm then gradually lowering its price over time.