One reason that monopolistically competitive firms often use celebrity endorsements is that:
a. the firm owners like to be around celebrities so they can feel important.
b. they can link their product's reputation with the celebrity's reputation.
c. celebrity endorsements are comparatively inexpensive.
d. they can have the celebrity as their potential customer.
e. firms like to spend a lot on advertisements.
b
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Bill owns a lawn-care company in Windermere, Florida, Florida, whose cost curves are illustrated in the above figure. The market equilibrium price in this perfectly competitive market equals $32 per lawn mowed
If Bill's average total cost curve is ATC, his total economic ________ equals ________. A) loss; $800 per week B) profit; $1,280 per week C) profit; $480 per week D) loss; $1,280 per week E) profit; $32 per week
The reservation value of a seller reflects her ________
A) willingness to pay for using a resource B) marginal cost C) marginal revenue D) total cost
A country that wants to create the highest level of economic integration would enter into a(n) Multiple Choice common market. free trade area. economic union. political union. customs union.
A. common market. B. free trade area. C. economic union. D. political union. E. customs union.
Fama and Jensen suggest that "the form of organization that survives in an activity is the one that delivers the product demanded by customers at the lowest price while covering costs." This is an example of
A. defective organizational architecture. B. market and organizational efficiency. C. economic benchmarking. D. market and organizational equity.