This real-world application is a bit different than our other applications because it actually doubts the economic theory we have been working with all semester. Could the supply curve actually be downward sloping in the “new economy?” Consider the following:
- The author states that the products of the ‘new economy,’ “cost nothing at all to produce and distribute, and never get used up.” Do you agree with this statement?
- Can you imagine a good or service with NEGATIVE marginal cost?!
Our classroom discussion will take place after exam #2!
Posted by Prof. C-S