Advertising costs are ________ costs and the per unit cost of advertising ________ as production increases
A) fixed; increases
B) variable; increases
C) fixed; decreases
D) variable; does not change
C
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Consider the market for cable television in the figure above. This graph depicts a natural monopoly because the
A) marginal cost curve is constant. B) demand curve is downward sloping. C) average cost curve is declining as it crosses the demand curve. D) marginal revenue curve is downward sloping.
Suppose that because of unseasonably cold weather in Florida, a significant portion of the orange crop has been lost to freezing temperatures. This statement means that
A) the demand for oranges will rise. B) the equilibrium quantity of oranges will rise. C) the amount of oranges available at various prices will decline. D) the price of oranges will fall.
Assume the MPC is 0.80. If the government wants to eliminate an AD shortfall of $300 billion, it should
A. Cut taxes by $75 billion. B. Increase taxes by $60 billion. C. Cut taxes by $240 billion. D. Cut taxes by $60 billion.
When quantity demanded increases at every possible price, the demand curve a. shifts to the left
b. shifts to the right. c. there is a movement along the given demand curve. d. none of the above.