Use the following statements to answer this question. I. To maximize profit, a firm will advertise more when the advertising elasticity is larger. II. To maximize profit, a firm will advertise more when the price elasticity of demand is smaller
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.
A
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Which of the following people is frictionally unemployed?
A) Samantha, who worked part-time in J.C. Penney to help with the Christmas rush but was laid off in January B) Amanda, a sales associate at J.C. Penney who quit her job to attend school full time C) Tran, a building construction supervisor who was fired because of a downturn in the building industry that is the result of a general downturn in the economy D) Eugene, a pharmaceutical drug salesman who was laid off when his company lost a large contract with an HMO E) Cara, an executive who lost her job because her company could not compete with foreign competition and whose skills are not wanted by other companies
According to the life-cycle hypothesis, if the average person expects to live another 48 years, the short-run MPC out of unexpected changes in income is
A) 0.52. B) 0.48. C) 0.9792. D) 0.0208.