How do product development and marketing affect a firm in monopolistic competition?
What will be an ideal response?
Product development and marketing have two effects on a firm. First, because these activities are costly, they increase the firm's costs and shift its costs curves upward. Second, they can increase the demand for the firm's products.
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An increase in investment, combined with an increase in imports, would have what effect on aggregate demand? a. AD would increase
b. AD would decrease. c. AD would stay the same. d. AD could either increase or decrease, depending on which change was of a greater magnitude.
The difference between a business plan and a scenario plan is:
a. A scenario plan is a one-to-three year planning document, but the business plan is a 10-to-20 year planning document. b. Really, there is no difference c. A scenario plan is like a capital budgeting plan. In short, it is for one scenario. But a business plan is for three to five years. d. A scenario plan is a long-term planning document (normally 10 to 20 years), and a business plan is a three-to-five year plan. e. None of the above.