In reference to determining the optimal amount of advertising, managers of trade associations face each of following additional challenges except which one?
A) the challenge of a constant marginal benefit of advertising across firms
B) the free rider problem
C) difficulty in prescribing a fair and practical way to share the cost of advertising across firms
D) difference in the marginal benefits of advertising across firms
A) the challenge of a constant marginal benefit of advertising across firms
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The revealed preference approach can provide more informative comparisons of market baskets if we also assume that the consumer's indifference curves are:
A) concave. B) convex. C) incomplete. D) intransitive.
Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a pound of beef in Argentina is
A) 2 gallons of wine. B) 3 gallons of wine. C) 0.5 gallons of wine. D) 0.33 gallons of wine.
Logrolling:
a. occurs when legislatures trade voted in order to pass legislation beneficial to their own districts b. often leads to pork barrel legislation c. both of the above d. neither of the above
Suppose that demand is inelastic within a certain price range. For that price range,
a. an increase in price would increase total revenue because the decrease in quantity demanded is proportionately less than the increase in price. b. an increase in price would decrease total revenue because the decrease in quantity demanded is proportionately greater than the increase in price. c. a decrease in price would increase total revenue because the increase in quantity demanded is proportionately smaller than the decrease in price. d. a decrease in price would not affect total revenue.