Which statement is INCORRECT with respect to sales promotion and advertising?
A) Perfect competition differs from monopolistic competition in that no individual firm in a perfectly competitive market will advertise.
B) A perfectly competitive firm, by definition, can sell all that it wants to sell at the going market price.
C) A perfect competitor advertises a product that is different from the products that all other firms in the industry are selling.
D) Advertising should be carried to the point at which the additional revenue from one more dollar of advertising just equals that one dollar of marginal cost.
Answer: C
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Demand-pull inflation persists because of
A) continuing increases in government expenditures. B) continuing increases in the quantity of money. C) continuing increases in the real wage rate. D) continuing decreases in the money wage rate. E) continuing increases in aggregate supply.
At 2015 prices, the value of production in 2016 was 6 percentage points higher than in 2015. At 2016 prices, the value of production in 2016 was 4 percentage points higher than in 2015
Using the chain-weighted output index, real GDP is ________ in 2016 than in 2015. A) 10 percent greater B) 5 percent greater C) 7.5 percent greater D) 4 percent smaller
The above table describes the accounts for the country of Pacifica. Using this information, net exports for Pacifica equals
A) $100. B) $900. C) -$100. D) $650.