What is the key incentive that motivates a manufacturer to sell its products?
a. making profits on sales
b. pleasing the consumer
c. putting others out of business
d. popularity of the product
Ans: a. making profits on sales
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Refer to the scenario above. What is likely to be the impact on Firm B's sales if none of the firms decide to sponsor the event?
A) A 7% increase in sales B) A 0% increase in sales C) A 2% increase in sales D) A 10% increase in sales
An inferior good is one for which demand increases as
a. price decreases b. price increases c. income increases d. income decreases e. the price of a related good decreases
Personal income includes: a. income received in the form of transfer payments. b. wages and salaries
c. interest earnings on bonds. d. all of the above.
Which of the following is often the result of free entry into monopolistic competition?
a. Losses increase while profits decrease in the long run. b. Losses are often magnified in the long run. c. Profits are often eliminated in the long run. d. Profits often increase in the long run.