When marketing makes customers better informed about all firms in the market:
a. demand curves for specific brands in the market are likely to become less elastic.
b. each firm is likely to have less market power
c. firms are better able to foster stronger brand loyalty.
d. the market power of individual firms is strengthened.
b
You might also like to view...
All other things held constant, lower marginal (income) tax rates
A) necessarily increase tax revenues. B) necessarily decrease tax revenues. C) decrease the attractiveness of productive activities relative to leisure and tax- avoidance activities, and shift the SRAS curve rightward. D) do not affect the attractiveness of productive activities relative to leisure and tax- avoidance activities and therefore the SRAS does not shift rightward or leftward. E) increase the attractiveness of productive activities relative to leisure and tax- avoidance activities and shift the SRAS curve rightward.
An increase in government spending may expedite recovery from a recession in the short run, but in the long run this policy may
A) reduce investment in new capital. B) make domestic businesses less competitive in international markets as the dollar appreciates in value. C) raise interest rates and reduce consumer expenditures on automobiles and new houses. D) All of the above are correct.
Suppose the GDP deflator in the United States is 125 and the GDP deflator in Japan is 100. Also assume the United States has trade barriers on Japanese goods in the form of quotas
What does this imply about the exchange rate of yen per dollar under the theory of purchasing power parity in the long run? A) The exchange rate of yen per dollar will be equal to 1.25. B) The exchange rate of yen per dollar will be greater than 0.8. C) The exchange rate of yen per dollar will be less than 0.8. D) The exchange rate of yen per dollar will be equal to 0.8.
The Federal Reserve will engage in a repurchase agreement when it wants to ________ reserves ________ in the banking system
A) increase; permanently B) increase; temporarily C) decrease; temporarily D) decrease; permanently