In making a decision about whether to increase its advertising budget the firm management should not consider
A. the added cost of producing more goods for sale.
B. the cost of the increased advertising.
C. the added revenue from increased sales.
D. interest payments on the firm's loan.
E. none of the above
Answer: D
You might also like to view...
In the table above, Jill's opportunity cost for 1 pound of food is ________ and her opportunity cost for 1 pound of clothing is ________
A) 1 pound of clothing; 4 pounds of food B) 1/2 of a pound of clothing; 2 pounds of food C) 1/3 of a pound of clothing; 3 pounds of food D) 2 pounds of clothing; 2 pounds of food E) 1 pound of food; 1 pound of clothing
A perfectly competitive firm is producing 50 units of output and selling at the market price of $23. The firm's average total cost is $20. What is the firm's total cost?
A) $23 B) $150 C) $1,000 D) $1,150 E) $20
What is the relationship between a perfectly competitive firm's marginal cost curve and its short-run supply curve?
What will be an ideal response?
You have observed that the forecasts of an investment advisor consistently outperform the other reported forecasts. The efficient markets hypothesis says that future forecasts by this advisor
A) may or may not be better than the other forecasts. Past performance is no guarantee of the future. B) will always be the best of the group. C) will definitely be worse in the future. What goes up must come down. D) will be worse in the near future, but improve over time.