If a firm that makes $5 profit per box of cigars pays Rush Limbaugh $1,000,000 to endorse their cigars, then to make the endorsement pay off they must sell at least:
A. $2,000,000 more in cigars.
B. $20,000 more in cigars.
C. 20,000 more boxes of cigars.
D. 200,000 more boxes of cigars.
Answer: D
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In a market in which firms operate in monopolistic competition,
A) the HHI for a single firm exceeds 2500. B) firms compete on price, quality and marketing. C) in the long run firms produce at their efficient scale. D) in the long run firms are not able to charge a marku
Refer to the demand and supply equations. What are the equilibrium price and quantity?
What will be an ideal response?
Which of the following is true of the relationship between price and quantity supplied? a. Whatever the price level, quantity supplied is equal to quantity demanded. b. More is supplied at lower prices. c. As the price rises, consumers are willing to purchase more of the good supplied. d. Except for market-day supply, an increase in price generates an increase in quantity supplied
e. An increase in price leads to a decrease in quantity supplied.
If a college education did not increase worker productivity,
a. no one would go to college. b. the earnings of workers with a college education would tend to be the same as for workers without a college degree. c. the earnings of workers with a college education would still be higher than for those without a college degree. d. the earnings of workers with a college education would be lower than for those without a college degree.