Which of the following is a reason why individual firms under pure competition would not find it gainful to advertize their product?
A. Firms produce a homogeneous product
B. The quantity of the product demanded is very large
C. The market demand curve cannot be increased
D. Firms do not make long-run profits
A. Firms produce a homogeneous product
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Why does unemployment not go to zero during booms?
What will be an ideal response?
The social interest theory of regulation is that
A) regulators help producers maximize economic profit. B) regulation seeks to increase the government's revenue. C) regulation causes producers to produce at a point where they are earning normal profits. D) regulation seeks an efficient use of resources. E) regulation focuses on the consumers' interests and ignores producers' interests.
If price falls from $100 to $99 and quantity demanded rises from 2 to 3, the price elasticity of demand is
A. 0.03. B. 1.75. C. 25.7. D. 39.8.
What do economists mean when they say that "there is no such thing as a free lunch?"
What will be an ideal response?