A firm experiencing constant returns to scale operates on the horizontal part of the:

Southwest has the highest rate of ____________ baggage and worst ________________ performance among major airlines.

Fill in the blank(s) with the appropriate word(s).

Which of the following examples shows how advertising can create greater elasticities of demand?

a. Ads claim that one cell phone is by far better than all the competitors’ cell phones. b. Ads show that most car companies reduce prices for their products during the fall. c. Ads show how several paper towel brands are better than the established paper towel brand. d. Ads reveal how a particular brand of detergent is inferior.