Clark Industries currently spends 5 percent of its sales on advertising. Suppose that the elasticity of advertising for Clark is 0.25. Determine the optimal profit margin over price (P ? MC)/P.

Briefly describe what happens when a perfectly competitive firm increases the total quantity it supplies of a good

To draw the consumption possibilities curve for a particular nation you need to know the output of the good for which the nation has a comparative advantage and the terms of trade.

Answer the following statement true (T) or false (F)