Expenditures on advertising ________
A) can lower average total cost if the advertising increases the quantity sold by a large enough amount
B) cannot lower average total cost because when a firm advertises it increases its costs
C) always lower average total cost because whenever a firm advertises, it increases the quantity sold
D) are variable costs so do not affect the average total cost
A
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Which of the following is an outcome of advertising for a monopolistically competitive firm? a. Long-run average costs shift downward
b. The firm's demand curve becomes flatter and shifts inward. c. The firm's demand curve keeps the same slope and shifts inward. d. Long-run average costs shift upward.
A report indicated that the average real wage in manufacturing declined by 2 percent between 1990 and 2000. If the CPI equaled 1.30 in 1990, 1.69 in 2000, and the average nominal wage in manufacturing was $35 in 2000, what was the average nominal wage in manufacturing in 1990?
A. $21.13 B. $26.92 C. $27.47 D. $26.40
What is the essence of the problem with targeting with fiscal policy?
A. In order to meet interest rate targets, fiscal policy must be enacted very quickly. B. It is difficult for the government to determine the target unemployment rate. C. Economic data takes time to analyze, so the government may not know when the economy has reached its target. D. The government may not have projects ready that will employ the people who are unemployed.
According to "Oil Spikes On OPEC Pact," OPEC wants to behave like a monopoly, choosing a rate of industry output that maximizes total industry profit. The challenges for all cartels, OPEC in particular, include all of the following except
A. Replicating monopoly outcomes. B. Coordination. C. Allocating market share. D. Preventing some members from decreasing production.