Monopolistic competitors advertise because
A. they produce goods that can be differentiated from the goods of other firms in the industry.
B. they have downward sloping demand curves.
C. the demand curves they face are very elastic.
D. they can earn long-run profits if they advertise.
Answer: A
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Refer to the payoff matrix below. Which of the following is true for Best Lights?
A) They do not have a pure strategy.
B) Their dominant strategy is to set a Low Price.
C) They do not have a dominant strategy.
D) Their dominant strategy is to set a High Price.
Which of the following does not increase (i.e., shift) the supply curve of real loanable funds?
a. Open market purchases of government securities by the central bank. b. A decrease in the discount rate. c. A decrease in the reserve ratio by the central bank. d. A decrease in the preferred asset ratio for near money (N/D), due to a shift in household preferences. e. All of the above increase the supply.
Which of the following would increase the net export component of U.S. GDP?
A. A bottle of French wine is purchased in New York B. A bottle of California wine is purchased in London C. A car produced in Michigan is purchased in Louisiana D. A car produced in Japan is purchased in California