Successful advertising by a monopolist will
A. reduce the gap between the monopoly and competitive output.
B. increase the gap between the monopoly and competitive output.
C. cause the monopolist to overproduce.
D. cause the monopolist to decrease output.
Answer: A
You might also like to view...
The fact that price subsidies reduce economic surplus implies that:
A. price subsidies help the rich but not the poor. B. we can find an alternative policy that will make both the rich and the poor better off. C. price subsidies are not effective at lowering prices. D. the quantity bought and sold in the market will fall.
Politicians always agree with economists about the most efficient way of doing things.
Answer the following statement true (T) or false (F)
Which of the following correctly explains why sellers in a perfectly competitive market are price takers?
A. There are few sellers, and so they have the power to take whatever price they want. B. There are many sellers, and so the market process generates an equilibrium price that cannot be influenced by any one seller. Thus they have no choice but to take the price generated by the market process. C. Sellers in a competitive market have the power to influence price by colluding with one another and using quotas to limit overall market output and thus raise price. D. Individual buyers in a competitive market have the power to influence price, and thus can impose prices and other conditions on powerless sellers.
Refer to the information provided in Table 23.10 below to answer the question(s) that follow. Table 23.10
Refer to Table 23.10. The MPC in this economy is
A. 0.5. B. 0.6. C. 0.75. D. 0.8.