Advertising makes it expensive for new firms to enter an industry.
Answer the following statement true (T) or false (F)
True
Advertising not only strengthens brand loyalty but also makes it expensive for new producers to enter the market, making it a viable barrier to entry.
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Assume that the current market price is below the market clearing level. We would expect:
A) a surplus to accumulate. B) downward pressure on the current market price. C) upward pressure on the current market price. D) lower production during the next time period.
The Federal Reserve Act:
a. established a system which allowed for better regulation of financial intermediaries. b. allowed only nationally-chartered banks to become members of the Federal Reserve system. c. allowed the Fed District Banks to offer commercial loans to private businesses at reduced interest rates. d. required that all Fed District Bank directors be associated with the commercial banking industry. e. all of the above.
In one year, a weapons plant can manufacture either 1,000 more guns or 50 more tanks. The plant's opportunity cost of an extra tank is approximately
a. 20 guns b. 50 guns c. 50 tanks d. 1/50 of a tank e. 1/50 of a gun
Average variable cost for an information product would
A. increase constantly as quantity increases. B. first decrease and then increase as quantity increases. C. remain constant as quantity increases. D. decrease constantly as quantity increases.