Adam Smith believed that through division of labor and specialization, producers could significantly increase their output. This is an example of a(n) ______.

Monopolistic competitors advertise because

A) they have downward sloping demand curves. B) the demand curves they face are very elastic. C) they produce goods that can be differentiated from the goods of other firms in the industry. D) they can earn long-run profits if they advertise.

If the price of the good measured on the horizontal axis is subject to volume discounts, then:

A. the budget line will get steeper as the consumer moves along it from left to right. B. the budget line will get flatter as the consumer moves along it from left to right. C. the indifference curve will get steeper as the consumer moves along it from left to right. D. the indifference curve will get flatter as the consumer moves along it from left to right.