As a result of advertising prices in monopolistic competition, are
a. higher because firms earn economic profits in the long run
b. higher because increased output leads to higher production costs per unit
c. lower if increased output allows lower average production costs per unit that more than offset the advertising costs
d. lower if advertising costs per unit fall as output increases
e. higher because advertising shifts each firm's demand curve to the right and make it flatter
C
You might also like to view...
Infrastructure is capital provided by the private sector. True or False
Payments to households not in exchange for goods and services currently produced are:
a. transfer payments. b. government purchases. c. consumption expenditures. d. investment expenditures.
A market system solves the
a. "what" and "how" decisions but not the "to whom." b. "what" and "to whom" decisions but not the "how." c. "how" and "to whom" decisions but not the "what." d. "what," "how," and "to whom" decisions.
In 1937-1938, the number of unemployed
A. fell dramatically by about 5 million. B. fell slightly by about 1 million. C. rose slightly by about 1 million. D. rose dramatically by about 5 million.