Answer the following statement(s) true (T) or false (F)
1. If the government imposed regulations on monopolistically competitive firms, the government would most likely end up subsidizing these firms.
2. Perfectly competitive firms often advertise their products.
3. Only firms with market power have an incentive to advertise.
4. People who back advertising claim that it supports freedom of expression.
5. A recognized brand name often harms consumers’ confidence in the quality of a product.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. FALSE
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Ethiopia provides a counterexample to the claim
A) central economic planning doesn't work well. B) nations are poor because they are subject to exploitation by nations with superior military power. C) a nation can move to the ranks of the wealthiest in the world with few natural resources. D) the rule of law is necessary for economic growth.
Money is used as a unit of account. This means
a. money cannot store value for use in the future. b. money is used to measure the exchange value and costs of goods, services, assets and resources. c. money has little or no intrinsic value. d. money is dependent on the quantity of gold held by the Federal Reserve.
Which of the following statements is true?
A) Treasury bills mature in 2 to 10 years. B) Treasury notes mature in 13 or 26 weeks. C) Treasury bills, notes, and bonds are considered to be very safe investments. D) Municipal bonds are issued to help the federal government build new projects such as highways and stadiums.
Generally, as the size of a firm increases:
A. monitoring costs increase. B. economies of scope fall. C. team spirit increases. D. marginal productivity rises.