Which of the following statements is true about advertising by a monopolistically competitive firm?
A) Since the monopolistic competitor, like the perfect competitor, makes zero profit in the long run, it is a waste of resources to advertise its products.
B) Advertising could make the monopolistic competitor's demand more inelastic, but advertising has no effect on a perfect competitor's demand.
C) Monopolistically competitive firms tend to shun advertising because advertising draws attention to the variety of differentiated products available in the industry.
D) Advertising will be more beneficial if a monopolistic competitor colludes with other firms to advertise the products of the industry as a whole rather than an individual firm's product.
B
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The fact that some resource prices are fixed by contracts help explain why firms:
a. increase output in the short run when the price level increases b. keep production levels constant in the short run when the price level decreases. c. sell output in the short run at fixed prices. d. increase output in the long run when the price level increases. e. decrease production when nominal wages fall in the long run.
The above table shows answers given by people interviewed in the Current Population Survey. Which people are structurally unemployed?
A) A, B, C, and D B) A, B, and C C) B and C. D) A, B, and D
Flora's Flower Shop bought a new van for $23,000. Today, the market price of this van is $11,000. The economic depreciation of the van is ________
A) $23,000 B) $12,000 C) $11,000 D) $34,000
Senior managers of a corporation can be regarded as the corporation's entrepreneurs
Indicate whether the statement is true or false