If one firm advertises and other firms in the market don't, then ______
A. the demand for the advertised good becomes more elastic
B. the profit-maximizing quantity of the advertised good decreases be-cause total fixed costs increase
C. the average cost of producing a small quantity of the advertised good rises but the average total cost of producing a large quantity might fall
D. the economic profit made from the advertised good increases
D If only one firm advertises, the demand for its good increases, which raises the economic profit the firm can make.
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All of the following will cause a shift in the supply of jeans EXCEPT
a. a decrease in the prices of jeans. b. a decrease in the number of jean manufacturers. c. an increase in the cost of producing jeans. d. a per-unit government subsidy on the production of jeans.
According to the Lucas critique, what is the proper way to evaluate a proposal that reduces government borrowing by raising taxes and reducing government spending?
What will be an ideal response?
Each point on a production possibilities frontier represents an efficient allocation of resources in an economy at one point in time.
Answer the following statement true (T) or false (F)
If the quantity of a good demanded by a typical consumer increases in response to the growth in purchases of other consumers,
A. a negative network externality is present. B. a network externality is absent. C. a network externality can be positive or negative D. a positive network externality is present.