Which of the following will not increase the demand for iced tea?
a. an increase in advertising that makes drinking iced tea more appealing
b. an increase in the price of iced coffee, a substitute product
c. an increase in the income of consumers (assume that iced tea is a normal good)
d. a decrease in the price of iced tea
d
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Consider a competitive industry in which a "green" company uses a cleaner but costlier production method than is used by other firms. In the long run, the "green" company will:
a. earn more profit than will the typical firm in the industry. b. drive its competitors out of business. c. have economic losses and exit the industry. d. charge a higher-than-average price for its product.
Refer to the below graphs. A short-run equilibrium that would produce losses for a monopolistic ally competitive firm would be represented by graph:
A. A
B. B
C. C
D. D