Pretty Polly produces dresses for little girls. When Pretty Polly's manager sets the change in ________ profit equal to its marginal cost of advertising, Pretty Polly's ________ profit is maximized.
A) net; gross
B) gross; net
C) net; net
D) gross; gross
B) gross; net
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The proportion of minimum-wage earners who are in families with incomes below the poverty line is
a. less than one-third. b. between one-third and one-half. c. between one-half and two-thirds. d. greater than two-thirds.
Refer to the accompanying table. If the price of Good A is $1 and the price of Good B is $3, then the rational spending rule is satisfied when the consumer purchases ________ units of Good A and ________ units of Good B. UnitsMarginal Utilityof Good AMarginal Utilityof Good B1304022733315244814
A. 4; 3 B. 4; 4 C. 3; 3 D. 3; 4
The amount by which government expenditures exceed revenues during a particular year is the:
A. public debt. B. budget deficit. C. full employment. D. GDP gap.
Refer to the competitive market diagram for product Z. Assume that the current market demand and supply curves for Z are D 2 and S 2 . If there are substantial external benefits associated with the production of Z, then:
A. efficient resource allocation occurs at output G and price B because the market
mechanism does not measure all benefits.
B. an output smaller than G would improve resource allocation.
C. government should levy a per-unit excise tax on Z to shift the demand curve toward D 1 .
D. an output greater than G would result in a more efficient allocation of resources.