To the extent that brand names developed in monopolistic competition provide a benefit to the consumer, it is:
a. by allowing for a lower total cost.
b. through their assurance that the firm will provide a quality product in order to preserve repeated transactions.
c. by encouraging the entry of new competitors.
d. by allowing the firm to engage in price discrimination.
Ans: b. through their assurance that the firm will provide a quality product in order to preserve repeated transactions.
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Liquidity is the
A) speed with which the price of an asset changes as its intrinsic value changes. B) inverse of the velocity of money. C) same as the velocity of money. D) ease with which an asset can be converted into money.
Which of the following transactions adds to U.S. GDP for 2015?
a. In 2015, Frank's Feta manufactures 2000 pounds of cheese that will eventually be sold to grocery stores. The 2000 pounds of cheese remains in Frank's inventory at the end of 2015. b. An Irish marketing consultant works in Richmond during the summer of 2015 and earns $45,000 during that time. c. When Len and Mika were both single, they lived in separate apartments and each paid $700 in rent. Len and Mika got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,500 per month. d. All of the above transactions add to U.S. GDP for 2015.
The level of real GDP identified by the long-run aggregate supply curve is
A. the level of GDP at which no one is below the poverty line. B. the level of GDP at which each business firm is experiencing growth in sales. C. the level of GDP at which each industry is experiencing growth in sales. D. the full-employment level of real GDP.
All of the following can create an oligopolistic structure EXCEPT
A. government licensing rules. B. economies of scale. C. low barriers to entry. D. mergers.