Perfect Shots is company specializing in wedding photos and they have a fixed advertising budget. Perfect Shots advertises on the radio and the television and it costs $5,000 per unit of radio advertising and $14,000 per unit of television advertising. At their current advertising levels, the marginal benefit from radio advertising is $5,000 and the marginal benefit from television advertising is
$14,000. Which of the following is true?
A) Perfect shots has optimally allocated their advertising budget, but that does not guarantee that they have maximized their profits.
B) To optimally allocate their advertising budget, Perfect Shots should increase the amount of advertising in radio and television.
C) Perfect shots has optimally allocated their advertising budget, which guarantees they have maximized their profits.
D) To optimally allocate their advertising budget, Perfect Shots should decrease the amount of advertising in radio and television.
A) Perfect shots has optimally allocated their advertising budget, but that does not guarantee that they have maximized their profits.
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In the United States, the wealthiest 10 percent of households own about ________ of total wealth
A) 40 percent B) 66 percent C) 90 percent D) 55 percent
Assume that a monopolist practices perfect price discrimination. The firm will produce an output rate
A) that is greater than the efficient level of output. B) that is less than the efficient level of output. C) that is equal to the efficient level of output. D) that converts consumers surplus into a deadweight loss.
Answer the question on the basis of the following data. All figures are in billions of dollars. Proprietor's Income 20 Compensation of Employees 300 Consumption of Fixed Capital 15 Gross Investment 80 Rents 10 Interests 20 Exports 30 Imports 50 Corporate Profits 25 Taxes on Production and Imports 5 Net Foreign Factor Income 0 Statistical Discrepancy 0 Refer to the above data. National income is:
a) $395. b) $380. c) $375. d) $360.
.Which of the following is most likely true when household debt as a share of income is abnormally high?
What will be an ideal response?