If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. negatively sloped and "bowed inward" toward the origin.
C. negatively sloped and "bowed outward" from the origin.
D. a positively sloped straight line.
Answer: C
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Which of the following is true about advertising?
a. If monopolistically competitive firms compete through advertising, that 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 a. and b. above are correct.
The difference between standard deviation and value at risk is:
A. standard deviation reflects the spread of possible outcomes where value at risk focuses on the value of the worst outcome. B. value at risk is expected value times the standard deviation. C. value at risk is a more common measure in financial circles than is standard deviation. D. nothing, they are two names for the same thing.
The demand for a particular good depends on variables such as:
A. consumer income. B. price of substitutes. C. price of complements. D. All of these.
A firm will exit a competitive market when
A) costs force the marginal cost curve to shift to the left. B) the long-run profit would be negative. C) it can earn only earn a zero long-run profit. D) Both B and C.