One of your classmates asserts that advertising, marketing research, and brand management are redundant expenditures because a firm can obtain the same information by simply looking at what customers are already buying
Which of the following is not a response you might offer her?
A) If a firm successfully manages its brand, customers become less price sensitive as they perceive fewer substitutes for the firm's brand.
B) Advertising and brand management allow a firm to create an entry barrier which will insulate the firm from competition and from undertaking further product innovations.
C) Conducting market research is a good way for firms to keep abreast of changing consumer tastes and preferences.
D) Marketing research could allow a firm to identify new market opportunities and at least, in the short run, a firm can make a profit supplying products to this market segment.
B
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A federal budget deficit
a. occurs when government expenditures exceed tax revenues. b. occurs when monetary policy works in the opposite direction of fiscal policy. c. occurs when tax revenues exceed government expenditures. d. occurs when transfer payments exceed tax revenues. e. will always result when Congress and the president cannot agree on expenditures.
If the ________ minus the ________ is positive, Project A is chosen over Project B
A) cost of Project A; cost of Project B B) net benefit of Project B; net benefit of Project A C) net benefit of Project A; net benefit of Project B D) total benefit of Project B; total benefit of Project A
Economists generally assume that the main goal of most businesses in the economy is to
A. provide jobs for the local population. B. avoid having to make very many decisions. C. maximize profits. D. be responsible corporate citizens.
Consider an economy where the only goods traded are coconuts and pineapples. Last year, 100 coconuts were sold at €1 apiece, and 200 pineapples were sold at €2.50 apiece. If the money supply was €100, what was velocity?
A. 30 B. 15 C. 6 D. 5