Author Question: Selling costs, such as advertising, are likely to be a large share of total cost in an industry that ... (Read 102 times)

justinmsk · **on:** Jun 29, 2018

Selling costs, such as advertising, are likely to be a large share of total cost in an industry that is

A) perfectly competitive.
B) monopolistically competitive.
C) a monopoly.
D) non-profit.

Question 2

What are the two conditions that are met if a consumer is maximizing utility?

What will be an ideal response?

juicepod · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

There are two conditions: (1 ) The consumer spends all his or her income. (2 ) The consumer equalizes the marginal utility per dollar from all goods.