D.average total cost.

78.

A major critique of advertising is that:

a.it provides information to consumers that they would be better off without.

b.it manipulates people's tastes, leading people to make bad choices.

c.it promotes excessive competition among firms in the industry.

d.it is usually linked to promotions, which undermine the market's price.

79.

A major argument in favor of advertising is that:

a .it provides information to consumers that allows them to make better choices.

b.it helps people reaffirm their tastes and preferences.

c.it reduces competition among firms in the industry, leading to lower prices.

d.it is usually linked to promotions, which help lower the market's price.

80.

Branding can be good for society because:

a.it allows people to show off the branded goods they use or wear.

b.it keeps generic goods from taking over the market.

C.it provides useful information to consumers about the quality of branded goods.

d.it helps firms enjoy higher prices and profits.

The Markets for the Factors of Production

81.

Factors of production are:

a.the coefficients in a production function.

b.the characteristics of a market that determine how much is produced.

C.the inputs used to produce goods and services.

d.the outputs from a production function.

82.

The property of diminishing marginal product applies:

a.only to workers in the short run.

B.applies to workers and any other variable inputs in the short run.

c.only to workers in the long run.

d.applies to workers and any other variable inputs in the long run.

83.

Which of the following statements is FALSE?

a.The value of the marginal product of labor represents the benefit to the firm from hiring an additional worker.

b.The value of the marginal product of labor curve represents the firm's demand for labor curve.

c.The value of the marginal product of labor diminishes as more workers are hired.

D.The value of the marginal product of labor is the same thing as the marginal product of labor.

84.

All of the following will cause the value of the marginal product of labor to increase, EXCEPT:

a.an increase in the price of the good sold by the firm.

b.a new production technology is developed and implemented by the firm.

c.an increase in the quantity of other factors of production used by the firm.

D.an increase in the number of workers employed by the firm.

85.

If the supply curve for labor is backward bending, and if the wage of a worker increases, she might choose to work: