In the scenario above, as a result of increased advertising, Talbot's markup
A) decreases by 100.
B) increases by 50.
C) increases by 75.
D) decreases by 60.
Question 2
A firm's long-run average cost curve
A) shows the lowest attainable average total cost of producing any level of output when the plant and labor are fixed.
B) is the sum of all of its short-run average cost curves.
C) tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output.
D) all of the above
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