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.
A
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Until 2007, the price of sport utility vehicles (SUVs) rose and each year more were purchased. This experience suggests that
A) there must have been technological advances in the way SUVs are produced. B) the "law of demand" does not hold true in this market. C) there must have movement leftward along the supply curve for SUVs. D) there must have been a rightward shift of the demand curve for SUVs.
Private investments are initially at point 5 on curve B. The crowding-out effect would be illustrated by a movement from point 5 to point:
Refer to the above graph. Private investments are initially at point 5 on curve B. The crowding-out effect would be illustrated by a movement from point 5 to point:
A. 2
B. 3
C. 4
D. 6