In the absence of economies of scale, advertising:
A. cannot influence demand.
B. is not used by monopolistic competitors.
C. is used by perfectly competitive firms.
D. increases the average total cost of producing a given amount of output.
Answer: D
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Refer to the table above. If the firm is a monopolistic competitor, up to what output will the firm produce?
A) 2 units B) 4 units C) 5 units D) 6 units
In 1947, which of the following activities were not made illegal for labor unions to do?
a. Coerce employees who are working at a firm to join a union b. Discriminate against employees c. Encourage employees to engage in a strike to force one employer to cease doing business with another employer d. Collect membership dues
Product differentiation forms the basic rationale for advertising expenditures by monopolistically competitive firms
Indicate whether the statement is true or false
If a firm sells its product in a monopolistic market, even though the firm operates in a perfectly competitive labor market, the firm will employ workers up to the point where
A. the MRP = the wage rate. B. the MRP = the output price. C. TR = TC. D. the MRP = the marginal physical product of labor.