Monopolistically competitive firms increasing their advertising will definitely achieve which of the following?
A) shift their average total cost curve up
B) shift their demand curve to the right
C) increase their economic profit
D) shift their demand curve to the right and shift their average total cost curve up
A
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Refer to the above figure. Which panel represents a monopolistic competitor that is earning zero economic profits?
A) Panel A B) Panel B C) Panel C D) Panel D
Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What costs would be considered when calculating economic profit?
A. The opportunity cost of his job and interest forgone of $64,000, and the explicit cost of $8,000 B. The implicit cost of the interest forgone of $4,000 and the explicit cost of $8,000 C. The explicit cost of $8,000 D. The implicit cost of his job of $60,000 and the opportunity cost of forgone interest of $4,000
A line that has a different slope at each point is a:
a. curve. b. straight line. c. vertical line. d. horizontal line.
The interest rate will increase as a result of which of the following events?
A) an increase in income B) an open market purchase of bonds by the central bank C) a reduction in income D) all of the above E) none of the above