Which of the following statements about advertising is true?
a. Advertising lowers the price of a product.
b. Advertising lowers the total cost of obtaining a good.
c. Advertising has no economic value.
d. Advertising increases the opportunity cost of time.
B
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A payment made by the government to private producers of roads and libraries would be an example of
A) a subsidy. B) a copyright. C) a voucher. D) public provision. E) a Coase payment.
The per-worker production function relates output per worker
A) to capital per worker. B) to the participation rate. C) to production per worker. D) in different countries.
A signal is
a. a proxy measure of job conditions b. a proxy measure of a job applicant's skills c. used by employers to indicate that a job interview is over d. an indication of an excess supply of labor e. an indication of an excess supply of qualified labor
In the long run, the entry of new firms in an industry
A) harms consumers by forcing prices up above the level of average cost. B) benefits consumers by forcing prices down to the level of total cost. C) harms consumers by forcing prices up above the level of total cost. D) benefits consumers by forcing prices down to the level of average cost.