How do advertising and other selling costs affect a firm?
A) They shift the marginal cost curve upward.
B) The only effect is that the excess capacity is reduced.
C) The only effect is that the demand for the product increases.
D) They shift the average total cost curve upward.
E) The do not change demand and shift the average total cost curve downward.
D
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On the graph above, suppose the economy is at point F when there is a temporary positive supply shock. The new long-run equilibrium is at point ________
A) H B) I C) F D) G E) none of the above
Firms tend to raise the price of their goods after acquiring a firm that sells a substitute good because
a. They lose market power b. There is an increase in the overall demand for their products c. The bundle has a more elastic demand than individual goods d. The bundle has a more inelastic demand than individual goods
While the short-run Phillips curve is upward-sloping, the long-run Phillips curve is downward-sloping
Indicate whether the statement is true or false
The additional goods and services produced by women in the United States as their labor force participation increases represent:
A. no change in economic activity, B. an increase in economic activity. C. a decrease in economic activity. D. a switch from market to non-market production.