Suppose a perfectly competitive firm is experiencing zero economic profits. In an effort to increase profits, the firm decides to initiate an advertising campaign for its product. The most likely short-run result of this campaign, ceteris paribus, would be
A. The ability to sell more at a lower price.
B. Economic losses for the firm.
C. The ability to sell more at the existing market price.
D. The ability to sell more at a higher price.
Answer: B
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The equilibrium rate of interest in the market for money is determined by the intersection of the
A. supply-of-money curve and the asset-demand-for-money curve. B. supply-of-money curve and the total-demand-for-money curve. C. investment-demand curve and the total-demand-for-money curve. D. supply-of-money curve and the transactions-demand-for-money curve.
If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would
A) always be an upward-sloping line. B) have a minimum point. C) have a maximum point. D) always be a downward-sloping line.
Regressional analysis that analyzes the relationship between one dependent variable and one independent variable is called:
A) simple regression analysis. B) correlation analysis C) multiple regression analysis. D) cluster analysis.
If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then positive analysis would have us consider:
A. whether the surplus transferred from consumers to producers is larger than the consumer surplus lost to deadweight loss. B. whether the producer surplus lost due to lower prices is greater than the producer surplus lost due to fewer transactions taking place. C. whether the producer surplus lost to deadweight loss is greater than the producer surplus gained from a higher price. D. whether the surplus transferred from producers to consumers is larger than the consumer surplus lost to deadweight loss.