Economics provides a theory to explain
A. how a successful business can be started.
B. how people make choices.
C. how businesses compete in the market.
D. how managers can cheat and get away with it.
Answer: B
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Which of the following is TRUE about the long-run aggregate supply curve?
A) It is vertical at the level of potential GDP. B) It shows the relationship between the price level and real GDP when the economy is at full employment. C) It does not shift in response to temporary changes in aggregate demand. D) All of the above are true.
Which of the following is true about advertising? a. If monopolistically competitive firms compete through advertising, and if advertising requires sunk-cost investment and creates brand loyalty, then advertising can be an effective entry cost. b. Advertising may be the only way that a new entrant can penetrate a market dominated by long-established firms. c. Advertising has no impact on entry
costs or market structure. d. Both answers a. and b. above are correct.
A manager can determine if her product is viewed as a normal good or an inferior good by considering
A) price elasticity. B) cross elasticity. C) income elasticity. D) advertising elasticity.
Table 11-2 QTRTC89590910293 10110100 11112105 12115110 ? In Table 11-2, marginal revenue at the profit-maximizing output is how much?
A. $5 B. $7 C. $8 D. $110