In competing with rivals, monopolistic firms will tend to use:
A. Price cuts because they do not add to costs like advertising
B. Advertising because it is less easily duplicated than price cuts
C. Collusion because it is a legal way to increase market share
D. Price wars because they will increase the profits of firms
B. Advertising because it is less easily duplicated than price cuts
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Answer the next question on the basis of the following four tax schedules for the given base of taxable income. IncomeTax ATax BTax CTax D$10,000$650$1,000$500$1,00020,0008502,0001,0003,00030,0009504,0001,5006,00040,0001,0506,0002,0009,500Which of the above tax schedules is a progressive tax schedule throughout?
A. Tax A B. Tax B C. Tax C D. Tax D
When inflation rises people will
a. demand more money so the price level rises. b. demand more money so the price level falls. c. demand less money so the price level rises. d. demand less money so the price level falls.
A firm’s profits are calculated as the difference between ______.
a. all the money received for its products and all that was spent to produce them b. the cost of producing the firm’s last unit and the firm’s average per-unit cost c. the cost of production in the short run and the cost of production in the long run d. the maximum market price accepted for the firm’s product and the cost to produce it
Nominal GDP differs from real GDP because:
a. Real GDP is adjusted for changes in the price level b. Nominal GDP is adjusted for changes in the price level c. Nominal GDP is based on constant prices d. Real GDP is based on current prices