If two consumption points are not on the same indifference curve, then one point is ________
A) a substitute for the other point
B) unaffordable and the other is affordable
C) preferred to the other
D) more expensive than the other
C
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Which of the following statements regarding brand names in advertising is not correct?
a. Brand names provide consumers with information about quality when quality cannot be easily judged in advance of purchase. b. Brand names give firms an incentive to maintain high quality to maintain the reputation of the firm. c. Brand names allow firms to produce and sell inferior products in the long run since people will continue to purchase the brand-name product. d. Brand names can cause consumers to perceive differences in products that do not actually exist.
Figure 10-2
Figure 10-2 shows demand and short-run cost curves for a perfectly competitive firm. In the short run, this firm would
a.
earn positive economic profits.
b.
earn economic losses.
c.
go out of business.
d.
Cannot be determined with the information given.