In the mid-1990s, Coke introduced a new soda in the soft drink market. Coke then used a new advertising campaign to associate the new soda with youth and strength. Coke was trying to:
A. shift the demand curve for competing soft drinks to the left.
B. create a perfectly competitive market for soft drinks.
C. maximize its per unit costs through advertising.
D. lower the market price of soft drinks.
Answer: A
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Consider a closed economy without the government. If the GDP of the economy is $25,000 and the savings rate in the economy is 25%, the aggregate savings in the economy is:
A) $8,000. B) $8,650. C) $6,250. D) $3,320.
Incorporated firms first began appearing in the 1850s
Indicate whether the statement is true or false
______ occur when a single firm can produce two or more products more cheaply than can two separate firms.
A. Economies of scale B. Economies of scope C. Diseconomies of scale D. Increasing returns to scale
If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Eddie has a comparative advantage in producing banana splits.
Answer the following statement true (T) or false (F)