Most app developers have adopted the business model of A) ...

[Kthamas]

Most app developers have adopted the business model of
 
  A) charging a between 1.99 and 2.99 for their apps to be downloaded.
  B) allowing their apps to be downloaded and used for free, while trying to still earn money from users.
  C) charging a small fee for their apps to be downloaded.
  D) allowing their apps to be downloaded to one device for free, but charging a high price for the apps to be downloaded to additional devices.

Question 2

Why do some firms use large amounts of capital and small amounts of labor while others use small amounts of capital and large amounts of labor?
 
  What will be an ideal response?

[meganlapinski]

Answer to Question 1

B

Answer to Question 2

The mix of resources used, such as large amounts of capital versus small amounts of capital, depends on economic efficiency. Economic efficiency is based on minimizing the value of the resources used, not the quantity. A firm will use the mix that produces output at the lowest possible cost, without regard to specific physical quantities or ratios of inputs. As the cost of capital decreases relative to the cost of other resources, capital-intensive production methods will become economically efficient and firms will avoid labor-intensive methods.

[Kthamas]

Thanks for the timely response, appreciate it

[yeungji]

Excellent