When the National Rifle Association Wants to Prevent New Restrictions

question 43

Multiple Choice

When the National Rifle Association wants to prevent new restrictions on firearms, its members shower Congress with letters, e-mails, faxes, and phone calls, and this is an example of what kind of lobbying?

• A) grassroots
• B) insider
• C) astroturf
• D) natural

Identify the conditions under which a monopolistically competitive firm can earn zero, positive, or negative profits.

Understand the concept of imperfect competition and its variants, including monopolistic competition and oligopoly.

Understand the concept of product-variety and business-stealing externalities in monopolistic competition.

Recognize the characteristics of long-run equilibrium in monopolistically competitive markets, including price, average total cost, and marginal cost relations.

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Definitions:

Return On Total Assets

A profitability ratio measuring net income produced by total assets during a period by comparing net income to the average total assets.

Dividends

Distributions to shareholders from a corporation, typically originating from the firm's earnings.

Market Price

The contemporary selling or buying price for an asset or service in the marketplace.

Earnings Per Share

A financial ratio calculated as a company's net income divided by the number of outstanding shares of its common stock.