Suppose a monopolist chooses to advertise its good and its own demand curve shifts to the right, then we know that
a. the industry's demand curve shifts in precisely the same way
b. its competitors share some of the benefits of the advertising
c. the monopolist's cost curves will shift to accommodate the shift in demand
d. the price of substitute goods will fall
e. consumers are turned off by the advertising and buy less at every price
A
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In the above figure, what will be the output level produced if average cost pricing is used?
A) 1,200 B) 900 C) 700 D) somewhere between 900 and 1,200
In the balance of payments accounts, a net importer of capital is a nation that
a. sells more goods in foreign countries than it imports b. buys more goods from foreign countries than it exports c. sells more assets to individuals in other countries than the assets it buys from them d. buys more assets from individuals in other countries than the assets it sells to them e. imports less machinery than it exports
Exhibit 3-8 Demand and Supply Data for Video Games ? Price Quantity Demanded of Video Games Quantity Supplied of Video Games $75 400 900 70 450 850 65 500 800 60 550 750 55 600 700 50 650 650 45 700 600 40 750 550 ? In Exhibit 3-8, if the price of video games was currently $45, there would be an ____________ of ______________ video games in this market.
A. excess demand; 700 B. excess demand; 100 C. excess supply; 100 D. excess supply; 600
A ________ curve means that ________
A) horizontal demand; a change in price does not change total revenue B) horizontal demand; the elasticity of demand is less than 1 C) horizontal supply; the elasticity of supply is infinite D) horizontal supply; the elasticity of demand is infinite E) vertical demand; a change in price does not change total revenue