For a firm with market power, advertising expenditures affect all of the following except which one?
A) total cost
B) demand curve
C) marginal cost
D) marginal revenue
C) marginal cost
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The percentage change in one's real income can be approximated by the percentage change in
A. price level minus the percentage change in nominal income. B. nominal income minus the percentage change in the price level. C. nominal income divided by the percentage change in price level. D. price level divided by the percentage change in nominal income.
Recall the Application. If the organization in New Zealand was successful in getting the Olympics to include sheep shearing as a spectator sport, and this helped to raise the world price of wool, the quantity of wool supplied would ________ because
the market supply curve for wool is ________ sloped. A) decrease; negatively B) increase; negatively C) increase; positively D) decrease; positively
If business taxes rise in a large open economy, it causes the current account to ________ and saving to ________
A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall
All of the following are true regarding perfectly competitive price determination EXCEPT
A) the market price is determined by the interactions among all buyers (households) and firms. B) the individual firm takes the market price as given. C) the individual firm is known as a market price maker. D) the individual firm's marginal revenue curve is horizontal at the market price.