Because there are many firms with similar products in purely competitive markets,

A. advertising is heavily used.
B. firms find it easy to build strong, distinct brands.
C. consumers develop personal preferences.
D. price is determined by the laws of supply and demand.
E. the many competitors will focus on variable cost pricing.


Answer: D

Business

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Unconscious reference to one's own cultural values when judging behavioral actions of others in a new and different environment is called

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What will be an ideal response?

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Henry Lee runs a kiosk at a beach as a summer business. He sells a bottle of pop made by a local manufacturer to Claude Erskin, who has never heard of the brand before

There is a piece of glass in the bottle and Claude is injured and wants to sue someone. Which of the following is true? A) Claude can only sue Henry, the retailer of the pop, since he has a contact only with him. B) Even though Claude bought the pop from Henry, Claude can sue the manufacturer in contract. C) Even though Claude has no contract with the manufacturer, he can sue it in tort. D) Claude can sue both Henry and the manufacturer. E) Claude can't successfully sue anyone.

Business