An increase in advertising costs affect a firm in a monopolistic competition by increasing the firm's
A) total fixed cost.
B) marginal cost.
C) total variable cost.
D) average variable cost.
A
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A company finds that for the next worker hired, the worker's VMP is less than the cost of the worker. In this case, to maximize its profit the company should
A) definitely hire the worker. B) perhaps hire the worker, depending on the relationship between the company's MC and MR. C) definitely not hire the worker. D) None of the above answers is correct.
The opportunity cost of a given investment is the potential earnings forfeited by tying up money in the investment.
Answer the following statement true (T) or false (F)
If an economic curve has a negative slope, then one variable
a. falls as the other rises. b. changes at a slower rate than another. c. has a smaller value than another. d. changes after another variable.
Individual Retirement Accounts and 401(k) plans make the current U.S. tax system
a. more like a consumption tax and so more like the tax system of many European countries. b. more like a consumption tax and so less like the tax system of many European countries. c. less like a consumption tax and so more like the tax system of many European countries. d. less like a consumption tax and so less like the tax system of many European countries.