As a result of advertising prices in monopolistic competition, are
a. higher because firms earn economic profits in the long run
b. higher because increased output leads to higher production costs per unit
c. lower if increased output allows lower average production costs per unit that more than offset the advertising costs
d. lower if advertising costs per unit fall as output increases
e. higher because advertising shifts each firm's demand curve to the right and make it flatter
C
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Why is the marginal revenue product schedule a demand schedule for the individual firm in a purely competitive resource market and selling output in a purely competitive product market?
What will be an ideal response?
Which statement is true?
A. The lower incomes that women earn relative to those earned by men is explained entirely by employment discrimination. B. Although there are many theories of poverty, few have any validity. C. Much of black poverty is caused by black male joblessness. D. None of these statements are true.