By promoting its brand name heavily, the monopolistically competitive firm
A) earns more profit in the long run.
B) signals its long-term intention to stay in the industry.
C) signals its intention to leave the industry.
D) guarantees a short run profit.
Answer: B
Economics
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A commercial bank's reserves are
A) bonds issued by the U.S. government that are very safe. B) the provision of funds to businesses and individuals. C) currency in its vault plus the balance on its reserve account at a Federal Reserve Bank. D) savings and time deposits. E) its loans.
Economics
An increase in the income tax rate leads to a large increase in deadweight loss if ________
A) the labor supply curve is highly elastic B) the labor supply curve is perfectly inelastic C) the labor demand curve is elastic D) the labor demand curve is perfectly inelastic
Economics