Individual orange farmers in a country decide to pool their advertising money and collectively release a new series of advertisements for oranges. Why would the farmers do this?

• A.They want to shift the supply curve for oranges to the right.
• B.They want to increase their market power in the orange production industry.
• C.They want to shift the demand curve for oranges to the right.
• D.They want to differentiate their brands.

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A company owns an empty office building and is deciding how to use it next year. It would cost $100,000 to staff the office and $15,000 for equipment. The revenues would be $160,000. Meanwhile, it could rent the office to another company for $75,000 in revenues. In both cases, the company must pay $5,000 for the building's electricity. If the company is seeking to maximize its economic profit, which course should it pursue and what is the outcome?

• A.Rent the office to another company, and earn $70,000 in economic profit.
• B.Use the office, and earn $40,000 in economic profit.
• C.Rent the office to another company, and earn $30,000 in economic profit.
• D.Rent the office, and earn $35,000 in economic profit.

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A professional football team is considering adding two more games to its season. Which of the following costs should team owners NOT consider when making this decision?

• A.Annual rent paid for the stadium
• B.Maintenance costs
• C.Costs per each additional game
• D.Hourly wages paid to security staff at games

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While proposing an advertising campaign to a supermarket, a marketing firm claimed that a previous campaign it designed for a department store increased sales by 10 percent. Which of the following research strategies should the supermarket pursue to determine whether this claim is justified?
I. Research sales growth for the department store's competitors during the time of the campaign.
II. Research sales growth for the marketing firm's other clients after their campaigns.
III. Research sales growth for companies that used different marketing companies' campaigns.
IV.
Research the department store's sales growth prior to the marketing campaign.

• A.III only
• B.I and IV
• C.III and IV
• D.I and II

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After a small country begins permitting the import of automobiles, a foreign automobile manufacturer begins shipping cars to the country. This manufacturer can produce cars much more cheaply than the only manufacturer located in the country and therefore enjoys significant profits. What will erode the profits for the foreign manufacturer?

• A.The foreign manufacturer's per-unit costs will increase as its output increases.
• B.Demand for cars in other countries will also increase.
• C.The foreign manufacturer will build a plant inside the country.
• D.Other foreign manufacturers will also begin shipping cars to the country.

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