Which statement is INCORRECT with respect to sales promotion and advertising?
A) Perfect competition differs from monopolistic competition in that no individual firm in a perfectly competitive market will advertise.
B) A perfectly competitive firm, by definition, can sell all that it wants to sell at the going market price.
C) A perfect competitor advertises a product that is different from the products that all other firms in the industry are selling.
D) Advertising should be carried to the point at which the additional revenue from one more dollar of advertising just equals that one dollar of marginal cost.
Answer: C
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Having an absolute advantage in the production of a good implies that a country
a. should specialize in the production of the good b. is able to produce the good with fewer resources than another country c. should not specialize in the production of the good d. also has the comparative advantage in the production of the good e. cannot have an absolute advantage in the production of the good
Self-interest
A) implies that a person must try to increase wealth at all times. B) implies that people will not give away wealth. C) is consistent with many goals that people pursue, including betterment of others. D) applies only to people in market settings.