The goal of product differentiation and advertising in monopolistic competition is to make
A. price more of a factor and product differences less of a factor in consumer purchases.
B. price less of a factor and product differences more of a factor in consumer purchases.
C. the firm productively efficient even if it is not allocatively efficient.
D. the firm allocatively efficient even if it is not productively efficient.
Answer: B
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When producing 8 units of output, average fixed cost is $12.50 and average variable cost is $81.25. Total cost at this output level is
A. $93.75. B. $97.78. C. $750. D. $880.
Making bread at home would be more efficient than making it in commercial bakeries
A) for people who place a sufficiently high value on home baked bread. B) if the ingredients used to make bread increased sufficiently in price. C) if the price of bread made in commercial bakeries did not reflect the efficiency of bakeries. D) if there were no labor costs in home baked bread.
In the above figure, the economy is initially at point B. If the exchange rate falls, there is
A) a movement to point C. B) a movement to point A. C) a shift to AD2. D) a shift to AD1.
European governments accepted prolonged periods of unemployment in the 1990s in order to reduce inflation
a. True b. False Indicate whether the statement is true or false