In monopolistic competition, an increase in a firm's advertising
A) has no effect on its average cost curves.
B) has no effect on demand.
C) increases the firm's average total cost.
D) increases the firm's marginal cost.
C
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Which of the following indicates that economies of scale have been overridden by other factors?
a. A company seeking to save on architect's fees during its move to Maryland copies the same building it used in San Francisco, so now it occupies the only office in Baltimore built to withstand earthquakes. b. The workers on the night shift at the Roadkill Diner, having no customers of their own, peel 400 potatoes, fill 300 catsup bottles, fry 100 pounds of bacon, and brew 80 quarts of coffee for the morning shift. c. Denny's Restaurant serves potatoes with its breakfasts nationwide, but in the South you can get grits instead. d. The Creepy Critters Summer Camp decides not to give campers a choice between hamburgers and hot dogs but makes creamed chipped beef on toast for everybody. e. Henry Ford said that his customers could have any color car they wanted, as long as they wanted black.
Which of the following would lead to an increase in the demand for British pounds?
a. A declining interest in British goods b. A decrease in the U.S. interest rate relative to the British interest rate c. Expectations that the exchange rate will fall d. A decrease of the U.S. price level relative to the British price level e. A decrease in the exchange rate.
A craze for apples in Riverdale increases the quantity demanded at every price by five bushels. Between any two prices, the new demand curve will be ____ the old demand curve
a. more elastic than b. less elastic than c. equal in elasticity to d. More information is needed to predict the relationship.
Explain what is meant by "in-kind transfer" programs. Briefly outline the advantages and disadvantages of an in-kind transfer program