For a firm with market power, advertising expenditures affect all of the following except which one?
A) demand curve
B) fixed cost
C) marginal cost
D) total cost
C) marginal cost
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Niceville, Ohio, only has two dentists, while the surrounding communities have many more on a per capita basis. The demand for dental services is such that these two dentists could agree to raise their prices (they play golf together every Saturday) and earn economic profit. Instead, they choose to price competitively and earn what other dentists earn. What might explain this?
In order to achieve the socially optimal level of output, goods that entail negative externalities should be:
A. taxed. B. banned. C. provided by the government. D. subsidized.
Refer to the information provided in Table 25.8 below to answer the question(s) that follow.Table 25.8
Refer to Table 25.8. If the required reserve ratio is 20%, Alamo Bank
A. has unloaned excess reserves of $100,000. B. has too few reserves on hand. C. is loaned up. D. is meeting its required reserve ratio and has no excess reserves.
A theory of taxation that states that ________ is the ability-to-pay principle.
A. citizens should bear tax burdens in line with their ability to pay taxes B. taxpayers should contribute to the government in a greater proportion than the benefits they receive from public expenditures C. taxpayers should contribute to the government in a smaller proportion than the benefits they receive from public expenditures D. taxpayers should contribute to the government in proportion to the benefits they receive from public expenditures