Consumers are generally willing to spend more time researching cars before making a purchase than they do researching paper towels because:
a. the cost of gathering information about paper towels is very small
b. the cost of gathering information about cars is less than the cost of gathering information about paper towels.
c. the cost of gathering information about cars is less than the cost of gathering information about paper towels.
d. the net benefit from gathering additional information about paper towels is likely much greater than the net benefit derived from gathering additional information about cars.
c
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A monopolistically competitive firm that is earning profits will, in the long run, experience all of the following except
A) demand for the firm's product becomes more elastic. B) a decrease in demand for its product. C) new rivals entering the market. D) a decrease in the number of rival products.
A profit-maximizing firm will hire additional units of labor until
A) the additional cost of hiring the last worker equals the additional revenue generated by that worker. B) the additional cost of hiring the last worker equals the marginal factor cost of the worker. C) the extra revenue from hiring the last worker equals the marginal physical product of labor. D) the extra cost from hiring the last worker equals the cost of the product.