Under perfect competition, the firm must decide
A) the best price to charge for its product.
B) the best rate of output it should produce.
C) the optimal level of advertising to engage in.
D) the optimal level of quality and the packaging that will maximize profits.
B
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Firm A produces and sells in a market that is characterized by highly differentiated consumer goods. Firm B produces and sells industrial products. Firm C produces and sells an agricultural commodity. Which firm is likely to spend the greatest portion of its total revenue on advertising?
a. firm A b. firm B c. firm C d. There is no reason to believe that any one of the three firms would spend a greater portion of its total revenue on advertising than the other two firms.
How is net national product (NNP) calculated?
a. Saving is added to the total income of a nation's citizens. b. Saving is added to the total income earned within a nation. c. Depreciation losses are subtracted from the total income of a nation's citizens. d. Depreciation losses are subtracted from the total income earned within a nation.