The main objective of advertising for a monopolistically competitive firm is
A) to differentiate the product and raise sales.
B) to reduce cost.
C) to earn long run profits.
D) to comply with government requirements on product information.
Answer: A
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Assume someone organizes all farms in the nation into a monopoly. Which of the following occurs? i. Consumer surplus decreases. ii. Economic profit increases. iii. A deadweight loss is created
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
In 2007, the value of the U.S. dollar
a. increased relative to the euro. b. decreased relative to the euro. c. remained stable relative to the euro. d. was equal to the value of the euro.
The speed at which money circulates is called:
A. the multiplier B. the pace of money. C. acceleration. D. velocity.
Positive economics is an approach to economics that
A. seeks to understand behavior and the operation of systems while making judgments about their usefulness to society. B. analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe preferred courses of action. C. examines the role of government in the economy. D. seeks to understand behavior and the operation of systems without making judgments.