Monopolistic competitors advertise because
A) they have downward sloping demand curves.
B) the demand curves they face are very elastic.
C) they produce goods that can be differentiated from the goods of other firms in the industry.
D) they can earn long-run profits if they advertise.
C
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A worker has negotiated a nominal wage contract with his employer for a period of 3 years. Which of the following will happen if the rate of inflation rises beyond the worker's expectation during this period?
A) The worker's real wage will increase. B) The worker will be better off. C) The company's shareholders will be worse off. D) The worker will be worse off.
A depreciation of the dollar causes
A) a decrease in U.S. exports. B) an increase in U.S. imports. C) an increase in the prices of U.S. imports. D) an increase in the prices of U.S. exports.
Explain: "The law of increasing additional cost is an inevitable phenomenon in economics."
What will be an ideal response?
Which of the following is a series of rules that stops trading on an exchange for a relatively short period of time?
A. Program trading B. Market limits C. Stop orders D. Circuit breakers