A monopolistically competitive firm finds its profit-maximizing rate of output by equating
A. price and marginal cost.
B. average revenue and average total cost.
C. the marginal revenue of advertising with the marginal cost of advertising.
D. marginal revenue and marginal cost.
Answer: D
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An increase in the demand for labor will ________ wages and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
The above table presents the balance sheet of the TBK commercial bank. If the desired reserve ratio is 25 percent, what is this bank's desired reserves?
A) $120 B) $150 C) $175 D) $30
The number of vehicle types available in the United States has increased dramatically over the past thirty years. Everything else equal, this would make
A) the demand for individual vehicle types to become less elastic. B) the demand for individual vehicle types to become more elastic. C) the demand for all vehicle types to become unitary elastic. D) the demand for low quality vehicle types to become less elastic.
President Salinas of Mexico devised a strategy to restore Mexican growth by encouraging
A) large inflows of foreign capital. B) large increases in domestic savings. C) an expansion of import substitution industrialization policies. D) more government ownership of industrial firms.