Which of the following is the result of competing through advertising for a monopolistically competitive firm?
A. Long-run average costs shift downward.
B. The firm's demand curve become flatter and shifts inward.
C. The firm's demand curve keeps the same slope and shifts inward.
D. Long-run average costs shift upward.
Answer: D
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Resource use is allocatively efficient when
A) we produce the goods with the highest opportunity cost. B) we produce the goods with the lowest opportunity cost. C) we cannot produce more goods and services. D) we produce the amount of the different goods we value most highly.
The efficiency wage theory argues that the productivity of workers increases: a. when they are paid more
b. when they are provided on-the-job training. c. with age and experience. d. when they are allowed to participate in internal decision making.
Which of the following statements best describes the scientific method?
a. The use of modern electronic testing equipment to understand the world. b. The unbiased development and testing of theories about how the world works. c. The use of controlled laboratory experiments to understand the way the world works. d. Finding evidence to support preconceived theories about how the world works.
If the equilibrium price of an hour with a personal trainer is $45 and the market price is currently $55, then there is
A. a surplus of personal trainers. B. a shortage of personal trainers. C. equilibrium.