The Reagan administration's policies were aimed at managing aggregate demand

An increase in advertising costs affect a firm in a monopolistic competition by increasing the firm's

A) total fixed cost. B) marginal cost. C) total variable cost. D) average variable cost.

Government failure refers to

a. a mismatch between employer incentives and firm objectives b. the failure of government to provide an efficient quantity of public goods c. the inability of firms to produce output efficiently d. the overabundance of competitors with government in production e. the under-allocation of tax revenues