If one firm advertises and other firms in the market don't, then ______
A. the demand for the advertised good becomes more elastic
B. the profit-maximizing quantity of the advertised good decreases be-cause total fixed costs increase
C. the average cost of producing a small quantity of the advertised good rises but the average total cost of producing a large quantity might fall
D. the economic profit made from the advertised good increases
D If only one firm advertises, the demand for its good increases, which raises the economic profit the firm can make.
You might also like to view...
An increase in the price level will: a. increase the quantity of RGDP supplied, but not increase short-run aggregate supply. b. decrease the quantity of RGDP supplied, but not decrease short-run aggregate supply. c. increase short-run aggregate supply
d. decrease short-run aggregate supply.
The use of pollution charges to reduce pollution confronts the problem of
a. free riders who avoid revealing benefits from abatement. b. determining specific individual damages and appropriate charges associated with pollutants. c. necessarily lowering the price of the products. d. requiring no agency to administer the tax.