A firm will increase its spending on advertising until
A) it has monopolized the market
B) it has deterred all future entry
C) the marginal benefit of advertising is zero
D) the marginal benefit of advertising equals the marginal cost of advertising
D) the marginal benefit of advertising equals the marginal cost of advertising
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Consider a market in which there is an external benefit. A private subsidy paid to producers can be used to arrive at the efficient market equilibrium because the subsidy will
A) increase the quantity produced. B) decrease the supply of the good. C) increase the price demanders pay. D) decrease demand.
In order for a taxicab to be operated in New York City, it must have a medallion on its hood. Medallions are expensive, but can be resold, and are therefore an example of
A) a fixed cost. B) a variable cost. C) an implicit cost. D) an opportunity cost. E) a sunk cost.
Which of the following is not a potential problem associated with government debt?
a. redistribution of income b. promotes underconsumption c. creates inflation d. promotes undersaving e. leads to less private investment
What is the difference between social insurance and public assistance in income maintenance programs? What are examples of each type of government program?
What will be an ideal response?