How can advertising make it easier for firms to enter a market?
a. It can provide tax breaks for the new firms.
b. It gives them a way to draw customers away from existing firms.
c. It can cause existing firms to spend more on advertising.
d. It give them a chance to draw employees from existing firms.
b. It gives them a way to draw customers away from existing firms.
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In the equation, 
is a(n) _____.
A. independent variable B. dependent variable C. slope parameter D. intercept parameter
Suppose you received a 5 percent increase in your nominal wage. Over the year, inflation ran about 2 percent. Which of the following is true?
A. Your real wage increased. B. Your nominal wage decreased. C. Both your nominal and real wages decreased. D. Although your nominal wage rose, your real wage decreased.
If the cross-price elasticity between goods X and Y is positive, we know the goods are:
A. substitutes. B. complements. C. inelastic. D. inferior goods.
When a pharmaceutical company introduces a new drug, its research and development costs are ________, and the cost of the chemicals used in manufacturing the drug are ________.
A. start-up costs; variable costs B. start-up costs; fixed costs C. marginal costs; variable costs D. fixed costs; start-up costs