The main objective of advertising for a monopolistically competitive firm is
A) to differentiate the product and boost demand.
B) to reduce cost.
C) to earn long run profits.
D) none of the above.
A
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An increase in the rent that a firm pays for its factory does not increase ______
A. total cost B. fixed cost C. marginal cost D. average fixed cost
Refer to Figure 12-5. If the market price is $20, what is the amount of the firm's profit?
A) $5,400 B) $6,750 C) $8,100 D) $16,200
Economies of scale commonly arise because of coordination problems
a. True b. False Indicate whether the statement is true or false
When can two countries gain from trading two goods?
a. when the first country can only produce the first good and the second country can only produce the second good b. when the first country can produce both goods, but can only produce the second good at great cost, and the second country can produce both goods, but can only produce the first good at great cost c. when the first country is better at producing both goods and the second country is worse at producing both goods d. Two countries could gain from trading two goods under all of the above conditions.