In which of the following ways do advertising and other selling costs affect a firm's cost curves?
i. Advertising expenditures increase total fixed costs.
ii. Selling costs increase total fixed costs.
iii. Advertising and other selling costs per unit of output decrease as output increases.
A) i only
B) i and ii
C) iii only
D) i and iii
E) i, ii, and iii
E
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The situation in which a firm charges different prices for different blocks of output is referred to as:
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination.
Suppose the federal government doubles the gasoline tax. The deadweight loss associated with the tax
a. also doubles. b. triples. c. quadruples. d. rises by a factor of 8.
Which of the following is not trueconcerning the indifference map?
A. Each consumer has a map of indifference curves. B. Consumers always prefer curves farther from the origin. C. Each indifference curve in the map represents a different level of total utility. D. Indifference curves intersect at the point where marginal utilities are maximized
Which statement is correct?
A. Because of its ability to administer prices, the pure monopolist can increase its price and increase its volume of sales simultaneously. B. In the short run, the pure monopolist will charge the highest price it can get for its product. C. Pure monopolists do not always realize economic profits. D. In the short run, the pure monopolist will maximize total profits by producing at that level of output where the difference between price and average total cost is greatest.