If a firm operates in a perfectly competitive market, then
A) all firms will advertise.
B) no firms will advertise.
C) the market leader will advertise.
D) new firms will advertise.
B
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In which of the following cases is the after-tax real interest rate highest?
a. inflation is 6%, the pre-tax real interest rate is 3%, and the tax rate is 20%. b. inflation is 6%, the pre-tax real interest rate is 3%, and the tax rate is 25%. c. inflation is 4%, the pre-tax real interest rate is 2%, and the tax rate is 20%. d. inflation is 4%, the pre-tax real interest rate is 2%, and the tax rate is 25%.
The law of demand is illustrated when:
A) an increase in tuition encourages more students to enroll in college because the quality of education has risen. B) an increase in the purchases of personal computers results from lower prices. C) higher oil prices cause oil companies to drill for new sources of oil. D) higher fees for the use of public golf courses force golfers to purchase fewer golf balls.
Medicare covers all those
A. who are both young and poor. B. unable to pay its premiums. C. over 65. D. eligible for Social Security benefits.
Since 1980 the difference between the earnings of college graduates and high school graduates has:
A. fallen, thereby increasing income inequality. B. increased, thereby increasing income inequality. C. remained constant. D. increased, thereby decreasing income inequality.