A monopolistically competitive firm that is incurring a loss will produce in the short run as long as the revenue the firm receives is sufficient to cover
A. advertising costs.
B. variable costs.
C. fixed costs.
D. marginal costs.
Answer: B
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One way for a company like McDonalds to overcome principal-agent problems is to advertise for franchisees
a. True b. False
If utility is not maximized, then:
a. some change in consumption will increase satisfaction. b. no change in consumption will increase utility. c. only a change in income will increase utility. d. only a change in price will increase utility. e. the principle of diminishing marginal utility does not hold.
The slope of a regression line is calculated by dividing
A. the intercept by the change in horizontal distance. B. the change in horizontal distance by the change in vertical distance. C. the change in horizontal distance by the intercept term. D. the change in vertical distance by the change in horizontal distance. E. none of these answer options are correct.
In the past, some governments' budget deficits became so large that they could not raise sufficient taxes to finance the spending, so they ________, which led to ________.
A. printed large quantities of paper money; hyperinflation B. reduced the amount of currency held by the public; a smaller money supply C. increased bank reserves; a larger reserve/deposit ratio D. ordered the central bank to sell government bonds; an increase in the money supply