11) How do advertising and other selling costs affect a firm?

A) They shift the marginal cost curve upward.

B) The only effect is that the excess capacity is reduced.

C) The only effect is that the demand for the product increases.

D) They shift the average total cost curve upward.

E) They do not change demand and shift the average total cost curve downward.

12) In which of the following ways do advertising and other selling costs affect a firm's cost curves?

i.Advertising expenditures increase total fixed costs.

ii.Selling costs increase total fixed costs.

iii.Advertising and other selling costs per unit of output decrease as output increases.

A) i only

B) i and ii

C) iii only

D) i and iii

E) i, ii, and iii

13) In the long run, advertising by all firms in a monopolistically competitive industry

A) increases all firms' demand.

B) decreases all firms' demand.

C) lowers all firms' costs.

D) might increase or decrease the firms' prices.

E) lowers all firms' prices.

14) In the example of the Nike running shoe, we see that

A) selling costs account for over half of a shoe's retail price.

B) materials actually account for two-thirds of the retail price of the shoes.

C) taxes account for one-quarter of the retail price of the shoes.

D) production costs exceed selling costs by a wide margin.

E) raw materials costs are by far the largest component of the total costs of producing the shoes.

15) A sunglass manufacturer spends a lot of money to promote its brand name. This promotion ________ consumers because it ________.

A) helps; lowers marginal cost

B) harms; definitely increases average total cost

C) helps; provides a signal and information about the sunglasses

D) harms; increases the elasticity of demand

E) helps; is a fixed cost and not a variable cost

16) When weighing the efficiency of monopolistic competition, which of the following should be considered?

i.the information provided by advertising

ii.product variety

iii.the extra cost of excess capacity

A) ii only

B) i and iii

C) ii and iii

D) i, ii, and iii

E) iii only

17) Because economic profits are eliminated in the long run in monopolistic competition, to make an economic profit, firms continuously

A) shut down.

B) exit the industry.

C) develop and market new products.

D) declare bankruptcy.

E) decrease their costs by decreasing their selling costs.

18) A firm in monopolistic competition that introduces a new and differentiated product will temporarily have a ________ demand for its product and is able to charge ________.

A) less elastic; a lower price than before

B) less elastic; a higher price than before

C) more elastic; a lower price than before

D) more elastic; a higher price than before

E) less elastic; the same price as before

19) The decision to innovate

A) depends on the marketing department's needs.

B) depends on whether the firm wants to benefit its customers.

C) is based on the marginal cost and the marginal revenue of innovation.

D) is unnecessary in a monopolistically competitive market.

E) None of the above answers is correct.

20) Advertising costs and other selling costs are

A) efficient.

B) fixed costs.

C) variable costs.

D) marginal costs.

E) considered as part of demand because they affect the demand for the good.

21) For a firm in monopolistic competition, selling costs

A) increase costs and reduce profits.

B) always increase demand.

C) can change the quantity produced and lower the average total cost.

D) can lower total cost.

E) have no effect on the quantity sold.

22) If advertising increases the numbers of firms in an industry, each firm's demand

A) increases.

B) does not change.

C) decreases.

D) might increase or decrease depending on whether the new firms produce exactly the same product or a product that is slightly differentiated.

E) None of the above answers is correct.

23) One reason a company advertises is to

A) signal consumers that its product is high quality.

B) lower its total cost.

C) produce more efficiently.

D) lower its variable costs.

E) lower its fixed costs.

24) The efficiency of monopolistic competition

A) is as clear-cut as the efficiency of perfect competition.

B) depends on whether the gain from extra product variety offsets the selling costs and the extra cost that arises from excess capacity.

C) comes from its excess capacity.

D) is eliminated in the long run.

E) is equal to that of monopoly.

11) How do advertising and other selling costs affect a firm?

A) They shift the marginal cost curve upward.

B) The only effect is that the excess capacity is reduced.

C) The only effect is that the demand for the product increases.

D) They shift the average total cost curve upward.

E) They do not change demand and shift the average total cost curve downward.

12) In which of the following ways do advertising and other selling costs affect a firm's cost curves?

i.Advertising expenditures increase total fixed costs.

ii.Selling costs increase total fixed costs.

iii.Advertising and other selling costs per unit of output decrease as output increases.

A) i only

B) i and ii

C) iii only

D) i and iii

E) i, ii, and iii

13) In the long run, advertising by all firms in a monopolistically competitive industry

A) increases all firms' demand.

B) decreases all firms' demand.

C) lowers all firms' costs.

D) might increase or decrease the firms' prices.

E) lowers all firms' prices.

14) In the example of the Nike running shoe, we see that

A) selling costs account for over half of a shoe's retail price.

B) materials actually account for two-thirds of the retail price of the shoes.

C) taxes account for one-quarter of the retail price of the shoes.

D) production costs exceed selling costs by a wide margin.

E) raw materials costs are by far the largest component of the total costs of producing the shoes.

15) A sunglass manufacturer spends a lot of money to promote its brand name. This promotion ________ consumers because it ________.

A) helps; lowers marginal cost

B) harms; definitely increases average total cost

C) helps; provides a signal and information about the sunglasses

D) harms; increases the elasticity of demand

E) helps; is a fixed cost and not a variable cost

16) When weighing the efficiency of monopolistic competition, which of the following should be considered?

i.the information provided by advertising

ii.product variety

iii.the extra cost of excess capacity

A) ii only

B) i and iii

C) ii and iii

D) i, ii, and iii

E) iii only

17) Because economic profits are eliminated in the long run in monopolistic competition, to make an economic profit, firms continuously

A) shut down.

B) exit the industry.

C) develop and market new products.

D) declare bankruptcy.

E) decrease their costs by decreasing their selling costs.

18) A firm in monopolistic competition that introduces a new and differentiated product will temporarily have a ________ demand for its product and is able to charge ________.

A) less elastic; a lower price than before

B) less elastic; a higher price than before

C) more elastic; a lower price than before

D) more elastic; a higher price than before

E) less elastic; the same price as before

19) The decision to innovate

A) depends on the marketing department's needs.

B) depends on whether the firm wants to benefit its customers.

C) is based on the marginal cost and the marginal revenue of innovation.

D) is unnecessary in a monopolistically competitive market.

E) None of the above answers is correct.

20) Advertising costs and other selling costs are

A) efficient.

B) fixed costs.

C) variable costs.

D) marginal costs.

E) considered as part of demand because they affect the demand for the good.

21) For a firm in monopolistic competition, selling costs

A) increase costs and reduce profits.

B) always increase demand.

C) can change the quantity produced and lower the average total cost.

D) can lower total cost.

E) have no effect on the quantity sold.

22) If advertising increases the numbers of firms in an industry, each firm's demand

A) increases.

B) does not change.

C) decreases.

D) might increase or decrease depending on whether the new firms produce exactly the same product or a product that is slightly differentiated.

E) None of the above answers is correct.

23) One reason a company advertises is to

A) signal consumers that its product is high quality.

B) lower its total cost.

C) produce more efficiently.

D) lower its variable costs.

E) lower its fixed costs.

24) The efficiency of monopolistic competition

A) is as clear-cut as the efficiency of perfect competition.

B) depends on whether the gain from extra product variety offsets the selling costs and the extra cost that arises from excess capacity.

C) comes from its excess capacity.

D) is eliminated in the long run.

E) is equal to that of monopoly.

11) How do advertising and other selling costs affect a firm?

A) They shift the marginal cost curve upward.

B) The only effect is that the excess capacity is reduced.

C) The only effect is that the demand for the product increases.

D) They shift the average total cost curve upward.

E) They do not change demand and shift the average total cost curve downward.

12) In which of the following ways do advertising and other selling costs affect a firm's cost curves?

i.Advertising expenditures increase total fixed costs.

ii.Selling costs increase total fixed costs.

iii.Advertising and other selling costs per unit of output decrease as output increases.

A) i only

B) i and ii

C) iii only

D) i and iii

E) i, ii, and iii

13) In the long run, advertising by all firms in a monopolistically competitive industry

A) increases all firms' demand.

B) decreases all firms' demand.

C) lowers all firms' costs.

D) might increase or decrease the firms' prices.

E) lowers all firms' prices.

14) In the example of the Nike running shoe, we see that

A) selling costs account for over half of a shoe's retail price.

B) materials actually account for two-thirds of the retail price of the shoes.

C) taxes account for one-quarter of the retail price of the shoes.

D) production costs exceed selling costs by a wide margin.

E) raw materials costs are by far the largest component of the total costs of producing the shoes.

15) A sunglass manufacturer spends a lot of money to promote its brand name. This promotion ________ consumers because it ________.

A) helps; lowers marginal cost

B) harms; definitely increases average total cost

C) helps; provides a signal and information about the sunglasses

D) harms; increases the elasticity of demand

E) helps; is a fixed cost and not a variable cost

16) When weighing the efficiency of monopolistic competition, which of the following should be considered?

i.the information provided by advertising

ii.product variety

iii.the extra cost of excess capacity

A) ii only

B) i and iii

C) ii and iii

D) i, ii, and iii

E) iii only

17) Because economic profits are eliminated in the long run in monopolistic competition, to make an economic profit, firms continuously

A) shut down.

B) exit the industry.

C) develop and market new products.

D) declare bankruptcy.

E) decrease their costs by decreasing their selling costs.

18) A firm in monopolistic competition that introduces a new and differentiated product will temporarily have a ________ demand for its product and is able to charge ________.

A) less elastic; a lower price than before

B) less elastic; a higher price than before

C) more elastic; a lower price than before

D) more elastic; a higher price than before

E) less elastic; the same price as before

19) The decision to innovate

A) depends on the marketing department's needs.

B) depends on whether the firm wants to benefit its customers.

C) is based on the marginal cost and the marginal revenue of innovation.

D) is unnecessary in a monopolistically competitive market.

E) None of the above answers is correct.

20) Advertising costs and other selling costs are

A) efficient.

B) fixed costs.

C) variable costs.

D) marginal costs.

E) considered as part of demand because they affect the demand for the good.

21) For a firm in monopolistic competition, selling costs

A) increase costs and reduce profits.

B) always increase demand.

C) can change the quantity produced and lower the average total cost.

D) can lower total cost.

E) have no effect on the quantity sold.

22) If advertising increases the numbers of firms in an industry, each firm's demand

A) increases.

B) does not change.

C) decreases.

D) might increase or decrease depending on whether the new firms produce exactly the same product or a product that is slightly differentiated.

E) None of the above answers is correct.

23) One reason a company advertises is to

A) signal consumers that its product is high quality.

B) lower its total cost.

C) produce more efficiently.

D) lower its variable costs.

E) lower its fixed costs.

24) The efficiency of monopolistic competition

A) is as clear-cut as the efficiency of perfect competition.

B) depends on whether the gain from extra product variety offsets the selling costs and the extra cost that arises from excess capacity.

C) comes from its excess capacity.

D) is eliminated in the long run.

E) is equal to that of monopoly.

They have a magnificent team. These people are always kind and willing to listen to your concerns or issues. Better yet, your assignment is always ready before the time, they usually send you a draft to double-check before they finalize your paper.

Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.

The work has not been graded but I like the output that was submitted to me. Is it possible for the same prof to do the next assignment I will be submitting? If possible, I will greatly appreciate it.

My third using this writer and absolutely amazing work! Very punctual and very understanding.

Outstanding job in writing my paper. I am always thrill to receive a well written paper that follows the instructions and the thorough details put into my paper. The quality of this paper is beyond awesome. Thank you so much.

I absolutely love this writer! He/she always cranks out a fabulous paper and follows the assignment guidelines/instructions perfectly. Thanks again for always providing such quality work!!!

It took some time to achieve the product I was looking for, but we eventually got there. I do feel like a lot of hard work was put into this, and it even exceeded the page requirement. I'm pretty pleased overall. I give my thanks.

Outstanding work! This writer followed every instruction and my paper came back with an A! I recommend to anyone needing help! Thank you again ❤️

Outstanding job in writing my paper. I am always thrill to receive a well written paper that follows the instructions and the thorough details put into my paper. The quality of this paper is beyond awesome. Thank you so much.

Made 100% on both the outline and the paper. Quick turnaround time and my writer responded within 30 min or less. Any edits my instructor needed, my writer was patient and worked diligently to accomplish the task. Would recommend my writer to anyone!

You are making my life so much easier! I am a single mom that works and goes to school. You guys are helping me with my projects so I can have more free time with my son.

I was sure it can fit in a single page but the next time I will add one more page because I am impressed with your professionalism and quality. Will use many more times till I graduate.

Simple registration and quality services. I just ordered one paper, and it was good enough to pass the exam. That is what I need the most. Good job.

I couldn’t finish my freaking essay, and I was very desperate. A friend of mine sent me a link, and that is how I found out about you guys. Thank you for professional tips and editing. Now, I understand how to write it properly.

I’m so grateful to you since you managed to complete my term paper in one day! You are definitely the best company ever!

I am sure on your ability to provide any type of paper I will order. I wish I could develop that skill your writers have to be able to have a flow of ideas and excellent sequencing of thoughts in writing.

I ordered a thesis paper and was satisfied. All the guys were polite and highly professional, even when I wrote to them several times per day. Thanks for your passion!

I turned to the service twice, and my papers always were beyond the expectations. To tell the truth, I was ready to find some grammar errors or something like that. However, everything was neat and tidy.

My friend recommended Doctor My Essay to me. It is convenient! Now we both turn to the service periodically coz wanna save some time and use it more effectively. I know that while I’m developing my startup, an expert is working on paper. Time management in work!

I write all paper works by myself but have some problems with literacy. Actually, I have enormous problems because English is not my native language. However, with proofreading from Doctor My Essay, I can relax and don’t be ashamed of mistakes.

Your ability to write concisely is a finding. The paper has a solid argument. It’s clear that the writer understood central claim about the topic. He also presented original ideas to consider.

That paper got the highest grade in my class and the professor thinks I’m the smartest student. Lol.

I was convinced that paper writing services are the fiction for naive students. But when it came to my research paper that was to be composed in 72 hours, I had no other options. I made the right choice when I ordered it from you!

I was also satisfied with the service. Usually, I write everything by myself, but this time ( I have no idea how it happens!) I missed the deadline. My writer was very responsible, wrote the essay quickly, and kept the instructions. Nice to know that such experts exist!

It is really affordable! The prices start from 9$, which is an excellent proposal on the market. Recently I worked with another service that took much more money and provided lower quality papers.

I am absolutely satisfied. I am first timer here. Revision was made quickly, and the author met my expectations. Thanks a lot. Paper is phenomenal.

Having heard a lot of negative reviews about such services, I was a bit skeptical. However, our cooperation with Doctor My Essay was without pitfalls. I made two comments about the final work, and they re-wrote some parts very promptly. I am satisfied and will turn to them in the future.

It was my first experience in online ordering, and I was a bit nervous. However, this was for nothing. I’ve got a high mark!

I understand that buying essays is a doubtful thing. You don’t put effort, don’t represent your ideas… However, I don’t perceive Doctor My Essay as a standard service. They don’t sell papers. They share high expertise!

According to my previous experience, this service is really the best. They support the client and have competitive writers. I give them a perfect score!

Nice service! It is cool that you can use the calculator on the main page and understand the price policy. For me, it is a huge plus!

Thanks to God I found this service! If I didn’t send my research to the teacher on time, he would eat me. I tell you! However, with doctor my essay service, I met the deadline, and I am still alive.

Your service is excellent! Convenient and not expensive. Thanks for that!

If you have problems with time management, just like me, you need to cooperate with Doctor My Essay. Once you registered and made the order, you understand how easier it makes your life! Everything is online: ordering, communication… You can control the process everywhere and be sure that an expert will provide a high-level paper.