Selling costs, such as advertising, are likely to be a large share of total cost in an industry that is
A) perfectly competitive.
B) monopolistically competitive.
C) a monopoly.
D) non-profit.
B
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The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. If 5 concerts are put on, then the
A) marginal external cost will be greater than the marginal social cost. B) marginal external cost will be greater than the marginal private cost. C) marginal external cost will equal the marginal private cost. D) marginal social cost will equal the marginal external cost. E) marginal external cost will equal zero.
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.25 per minute. How many minutes will high-demand consumers purchase?
A. 75 B. 175 C. 200 D. 100
Entry by new firms into a perfectly competitive industry
A. has no effect on existing firms. B. results in higher output by existing firms in equilibrium. C. results in lower output by existing firms in equilibrium. D. results in no change in the market price or output.
Discounting is a process of turning a stream of future returns into a present dollar equivalent
Indicate whether the statement is true or false