You probably know why firms advertise. But the incentives to advertise vary from market structure to market structure. In which market structure is there a weak, but still existent, reason to advertise?

Increasing returns means that

A) each additional worker produces more than the worker before him/her. B) each additional worker costs less. C) marginal cost rises. D) technology is having a negative impact on production.

The greater the interest rate

A) the greater the present value of a sum to be received a year in the future. B) the greater the opportunity cost of another dollar of current consumption. C) the more a dollar invested today will be worth a year from now. D) the lower the discount rate.