The high cost of advertising during the Super Bowl will
A) not affect the efficient level of output because advertising is a sunk cost.
B) will affect the efficient level of output because profits will fall significantly.
C) not affect the efficient level of output because advertising is a fixed cost.
D) Not enough information given.
A
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When large oligopolistic firms negotiate with the unions of their employees, the resulting bargaining process closely resembles
a. perfect competition. b. a dual labor market. c. monopolistic competition. d. bilateral monopoly.
If good x is available free of charge, then
a. good x must be provided by nature. b. good x must be provided by the government. c. the private market cannot ensure an efficient allocation of resources in the market for good x. d. government policy is incapable of increasing total surplus in the market for good x.