What happens if Firm A does not advertise but Firm B does advertise?
a. Firm A makes $125 million in profit while Firm B makes $50 million in profit.
b. Firm A makes $125 million in profit while Firm B makes $100 million in profit.
c. Firm A makes $50 million in profit while Firm B makes $125 million in profit.
d. Firm A makes $100 million in profit while Firm B makes $125 million in profit.
c. Firm A makes $50 million in profit while Firm B makes $125 million in profit.
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Suppose a = 50, c = 0.8, and T = 410. How much is saved out of a total income of 1230?
A) 706 B) 606 C) 278 D) 196 E) 114
Which of the following is NOT studied in microeconomics?
A) the effect of an increase in gasoline taxes on the purchase of gasoline B) the impact of an increase in the unemployment rate on economic production C) the impact of firms' collective hiring choices on the aggregate unemployment rate D) the impact of higher fuel prices on the cost of airline tickets
Consider an NBA superstar Kobe Bryant and one of your economics professors. Who is likely to receive more economic rent in his/her job? Explain your answer
What will be an ideal response?
When you compare the effects of government spending on aggregate demand with the effects of taxes on aggregate demand, the effects of government spending are
a. smaller. b. larger. c. the same. d. impossible to predict.