A firm will increase its spending on advertising until
A) it has monopolized the market.
B) it has deterred all future entry.
C) the marginal benefit of advertising is zero.
D) the marginal benefit of advertising equals the marginal cost of advertising.
D
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The most important characteristic of the equilibrium price is that it
a. guarantees that producers earn profit b. clears the market, leaving neither a surplus nor a shortage c. maximizes the quantity demanded d. minimizes the quantity demanded e. guarantees that all buyers who desire the product will get it
An asset's specificity can be measured in terms of the percentage of its cost that can be recovered if it is redeployed into its next most valuable use
Indicate whether the statement is true or false
Suppose that the EPA has proposed strict controls on the amount of sulfur that diesel fuel contains. These controls were designed to fully offset the cost of pollution generated by diesel fuel vehicles. The effect of the regulation is estimated to increase the equilibrium price of a gallon of diesel fuel by 10 cents. Assuming that the supply of diesel fuel has a positive slope and demand has a negative slope, the quantity of diesel fuel sold after imposition of the regulation will:
A. decrease only if diesel fuel is a normal good. B. decrease. C. remain the same. D. increase.
the banking system in the United States creates money through the combination of excess reserves and
What will be an ideal response?