The brand name of a firm
A) has nothing to do with the profitability of a firm.
B) has been considered irrelevant by economists since profits for a monopolistic competitive firm are zero in the long-run.
C) relates to consumers' perception of product differentiation and to the market value of a firm.
D) is important in the short-run but not in the long-run.
C
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The free-rider problem plagues public goods because
A) public goods are not produced by profit-maximizing firms and hence can be produced only at a loss to society. B) once public goods are produced it is not possible to exclude anyone from consuming these goods. C) the government can refuse to serve a citizen. D) the public doesn't care about public goods.
The fiscal policy of the United States is
A) summarized in the budget of the U.S. federal government. B) the sum of the budgets of each state and municipality. C) published in the Federal Reserve Bank's Annual Report. D) announced by the President in his State of the Union message.
Harvey, a U.S. taxpayer, purchased 10 shares of MVC stock for $100 per share; one year later he sold the 10 shares for $130 a share. Over the year, the price level increased from 140.0 to 147.0 . What is Harvey's before-tax real capital gain?
a. $1,300 - $1,000(1.05) and this is the gain he is to report on his income tax b. $1,300 - $1,000(1.05) but he is to report a $300 gain on his income tax c. $1,300 - $1,000(1.07) and this is the gain he is to report on his income tax d. $1,300 - $1,000(1.07) but he is to report a $300 gain on his income tax
Assume that the t-shirt industry is perfectly competitive. If the industry is in long-run equilibrium when the market price of t-shirts is $10:
A. minimum average variable cost equals marginal cost. B. minimum long-run average total cost is less than $10. C. minimum long-run average total cost is $10. D. marginal cost exceeds $10.