Advertising is a ________ cost that is incurred by ________
A) variable; monopolies
B) variable; perfectly competitive firms
C) fixed; perfectly competitive firms
D) fixed; monopolistically competitive firms
E) marginal; monopolistically competitive firms
D
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Based on the figure below. An economy is currently in long-run equilibrium at point B, at an inflation rate of ?', which is too high for to sustain economic growth. If an anti-inflationary policy is enacted, the economy will be in short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________. 
A. B; C B. A; C C. B; A D. A; B
Refer to the figure above. What is the quantity supplied in the market when the market is supplied by one firm?
A) 30 units B) 45 units C) 60 units D) 90 units
In which scenario can a perfectly competitive firm continue to produce in the short term, even though it would mean economic losses (where P = price, AVC = average variable costs, and ATC = average total cost)?
a. P < AVC but P > ATC b. P = AVC + ATC c. P > ATC – AVC d. P > AVC but P < ATC
Very low four-firm concentration ratios characterize the
A. beer industry. B. cellular telephone service industry. C. furniture industry. D. breakfast cereal industry.