The product-variety externality is associated with the
a. producer surplus that accrues to incumbent firms in a monopolistically competitive industry.
b. loss of consumer surplus from exposure to additional advertising.
c. consumer surplus that is generated from the introduction of a new product.
d. opportunity cost of firms exiting a monopolistically competitive industry.
c
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The Board of Governors of the Federal Reserve System is
A) elected by the public. B) elected by members of the American Banking Association. C) appointed by the Congress. D) appointed by the President with approval of the U.S. Senate.
A depreciating domestic currency is often perceived to be a sign of a(n):
A) economic expansion. B) strong government. C) weak government. D) global slowdown.
Why does real GDP have limitations in determining economic welfare?
What will be an ideal response?
What is the distinction between private cost and social cost?
What will be an ideal response?