Advertising most likely has the strongest effect on changes in ______.

In a large open economy, an increase in ________ leads to ________

A) desired saving; an increase in the domestic interest rate B) desired investment; an decrease in the domestic interest rate C) desired saving; an increase in desired investment D) desired saving; a decrease in actual investment E) none of the above

In the short run, a perfectly competitive firm will maximize profit by producing where: a. MC = MR

b. MC = ATC. c. ATC = MR. d. AVC = MC.