It makes sense for Wendy's to advertise its new menu that allows customers to choose fruit or salad as a substitute for French fries in its values meals, as long as doing so raises:
A. revenue by less than the cost of advertising.
B. costs.
C. revenue by more than it raises the cost of advertising.
D. any revenue at all.
Answer: C
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The three elements of a game are:
A. the costs, the revenue, and the profit. B. the firm, the consumers, and the profit. C. the players, the strategies, and the payoffs. D. the model, the graph, and the costs.
Which of the following would tend to increase unemployment in the short run?
a. commercial banks calling in loans to build up their excess reserves b. an increase in reserve requirements c. an increase in the discount rate d. all of the above
A Herfindahl index of 10,000 suggests:
A. perfect competition. B. monopolistic competition. C. oligopoly. D. monopoly.
Advertising, fads, and fashion are examples of influences on demand that are generally referred to as altering expectations about products.
a. true b. false