Which of the following is true about advertising?
a. If monopolistically competitive firms compete through advertising, and if advertising requires sunk-cost investment and creates brand loyalty, then advertising can be an effective entry cost.
b. Advertising may be the only way that a new entrant can penetrate a market dominated by long-established firms.
c. Advertising has no impact on entry
costs or market structure.
d. Both answers a. and b. above are correct.
d
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Because of their greediness, speculators are considered bad for exchange-rate markets
a. True b. False Indicate whether the statement is true or false
Refer to the figure above. What does the region EFG represent?
A) Consumer surplus B) Producer surplus C) Deadweight loss D) Economic profit
Farmers can plant either corn or soybeans in their fields. Which of the following would cause the supply of soybeans to increase?
A) an increase in the price of soybeans B) an increase in the demand for corn C) a decrease in the price of corn D) an increase in the price of soybean seeds
Time-series studies of consumption reveal that
A) the long-term saving ratio is rising. B) the long-term saving ratio is falling. C) the long-term saving ratio is constant but the marginal propensity to consume is falling. D) both the long-term marginal propensity to save and the long-term saving ratio are constant.