In an oligopoly, advertising:
a. allows a firm to sell any quantity it wishes
b. shapes consumers' preferences.
c. shapes perceived demand for a price taker.
d. allows a firm to raise the prevailing market price.
b
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According to the Strong Coase Theorem, when will the assignment of property rights have no effect on the allocation of resources?
a. Always. b. When there are no transactions costs. c. When there are no transactions costs and changes in the distribution of income do not have significant effects on market demand curves. d. When liability is assigned to the party with the least-cost method of dealing with an externality problem.
The outcome from a voucher scheme is efficient when the government makes the value of the voucher equal to ________
A) marginal external cost B) marginal external benefit C) external cost D) external benefit
In the long run, total variable cost is zero
Indicate whether the statement is true or false
Which of the following can a firm use to reduce competition in the market?
a. Locking in customers to long term contracts b. Seek an exclusive government contract c. Acquire patents d. All the above