In general, a firm sends a signal to consumers that their product is high quality when
A. it spends very little in advertising campaigns.
B. it has low level fixed costs.
C. it has high level of fixed costs.
D. it gives huge discounts to large sellers.
Answer: C
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Which of the following might be a method that the government could use to promote the production of a good that generates positive externalities?
A) subsidies B) regulations C) financing additional production D) All of the above are correct.
All of the following can cause conflict between divisions EXCEPT
a. Coordination between divisions does not benefit all divisions equally b. managers of cost centers care too little about enhancing revenues c. managers are rewarded only for actions that profit their own division generates, regardless of the effects on other divisions d. corporate executives cannot tell when one divisional manager's decisions are appropriate or not
If firms were required to pay the full social costs of the production of goods, including both private and external costs, other things being equal, there would probably be: a. an increase in production
b. a decrease in production. c. a greater misallocation of resources. d. a decrease in the market price of the product.
Which of the following characteristics applies to a monopolistically competitive? industry?
A. Firms act independently of each other. B. There are very few firms in the industry. C. Collusion is common. D. Firms in the industry each control a large share of the market. e. Products are? similar, but not? identical, to? competitors' products.