Pretty Polly produces dresses for little girls. At its current advertising level, Pretty Polly's marginal cost of advertising is $500,000 and their marginal benefit is $750,000. Which of the following is true?
A) If the firm increases the amount of advertising, its net profits will decrease.
B) The firm is currently maximizing its net profit.
C) The firm should increase the amount of advertising to increase its net profit.
D) The firm should reduce the amount of advertising to increase its net profit.
C) The firm should increase the amount of advertising to increase its net profit.
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The unregulated, single-price monopoly shown in the figure above makes a total economic profit of
A) $24. B) $16. C) $8. D) $4.
The effect of an initial spending change causing a larger change in overall output is:
A. the multiplier effect B. crowding out. C. the income effect. D. the substitution effect.
Normative economics deals with _________ and positive economics deals with _________
a. "what should be" topics or issues; "what is" topics or issues b. abstractions of reality; reality c. microeconomics; macroeconomics d. negative economic outcomes; positive economic outcomes e. changing economic conditions; unchanging economic conditions
more foreign investment, attracted by the expectation of economic and political stability
What will be an ideal response?