How do product development and marketing affect a firm in monopolistic competition?
What will be an ideal response?
Product development and marketing have two effects on a firm. First, because these activities are costly, they increase the firm's costs and shift its costs curves upward. Second, they can increase the demand for the firm's products.
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Which of the following is correct when the perfectly competitive firm is producing its long-run equilibrium output level?
a. MR equals MC. b. AR equals ATC. c. P equals MC. d. All of these.
Capital account transactions occur
A) when an U.S. company purchases goods from a foreign company. B) because of cross-border flows of financial assets. C) when you move money from one U.S. bank to another U.S. bank. D) when an U.S. citizen purchases stock in an U.S. corporation.
Inflation refers to a one-time price increase in a particular market
a. True b. False Indicate whether the statement is true or false
Depreciation represents
A. The consumption of capital in the production process. B. Wasted capital. C. Gross investment plus net investment. D. A loss of productive capability as a result of the inefficient use of resources.