Which of the following statements is not correct?
a. The typical monopolistically competitive firm could reduce its average total cost if it produced more output.
b. Monopolistically competitive firms advertise in order to increase the elasticity of the demand curve they face.
c. Expensive advertising might help consumers if it is a signal that the product is good.
d. Brand names acquired at great cost might help consumers by assuring quality.
b
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If Justin is willing to pay as much as $100 for a ticket to see the Rolling Stones, but is able to buy a ticket for $55, then he has a(n)
a. consumer surplus of $45 b. consumer deficit of $45 c. marginal utility of $45 d. marginal utility of $55 e. total utility of $155
When the market generates an equilibrium price, we know that
a. the quantity demanded is higher than the quantity demanded associated with a market that is not in equilibrium b. excess demand and excess supply are zero c. increases in quantity demanded are matched by increases in quantity supplied d. it is the most profitable price for suppliers e. all demanders who want the good will get it
What does the Phillips curve illustrate, and what changes in the AS-AD model support this relationship?
What will be an ideal response?
Since Ditto can always be expected to choose the same activity as Dot in the copycat game
a. any move by Dot to escape from Ditto would not be a Pareto improvement. b. any move by Dot to escape from Ditto would be a Pareto improvement. c. Ditto's choice to follow Dot is a Pareto improvement over going by himself. d. Ditto's choice to follow Dot would be a Pareto improvement over playing by himself so long as Dot does not move.