Which of the following is the result of competing through advertising for a monopolistically competitive firm?
A. Long-run average costs shift downward.
B. The firm's demand curve become flatter and shifts inward.
C. The firm's demand curve keeps the same slope and shifts inward.
D. Long-run average costs shift upward.
Answer: D
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What happens in public schools when government funds subsidize education?
A) There is a shortage of schools. B) The quality of education rises. C) The cost of providing the education is less than what the student pays. D) The cost of providing the education is more than what the students pays.
The term "recession" describes a situation where:
A. inflation rates exceed normal levels. B. output and living standards decline. C. an economy's ability to produce is destroyed. D. government takes a less active role in economic matters.