Author Question: In monopolistic competition, advertising costs A) are fixed costs. B) are variable costs. C) ... (Read 207 times)

jace · **on:** Jun 29, 2018

In monopolistic competition, advertising costs

A) are fixed costs.
B) are variable costs.
C) affect the firm's ATC curve.
D) All of the above answers are correct.

Question 2

Paying salespeople a fixed wage contract, one in which income does not depend on the volume of sales, avoids

A) both adverse selection and moral hazard.
B) neither adverse selection nor moral hazard.
C) adverse selection but not moral hazard.
D) moral hazard but not adverse selection.