In monopolistic competition, advertising costs
A) are fixed costs.
B) are variable costs.
C) affect the firm's ATC curve.
D) All of the above answers are correct.
D
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The variables in the index of leading indicators are included in the index because
a. they turn down prior to a deflation and turn up prior to an inflation. b. they generally lag behind turns in the business cycle. c. they turn down prior to a recession and turn up before the beginning of a business expansion. d. they provide a comprehensive measure of the current state of the economy.
The success of a cartel rests upon
A) inducing all members to limit their combined output and charge the same price. B) inducing all members to differentiate their products and charge different prices. C) making exit from the cartel as nearly costless as possible. D) discouraging some firms in the market from joining.