Which of the following examples reflects product differentiation?
a. When Kerem buys ibuprofen, he always buys the same brand even though all brands use the same formula.
b. Maria has to buy Happy Cow yogurt because it is the only organic yogurt a nearby store carries.
c. When someone asks Lucas what brand of milk he buys, he can’t remember the name.
d. Aisha has difficulty deciding what brand of lipstick to buy because they all seem so similar.
a. When Kerem buys ibuprofen, he always buys the same brand even though all brands use the same formula.
You might also like to view...
Which of the following correctly explains why sellers in a perfectly competitive market are price takers?
A. There are few sellers, and so they have the power to take whatever price they want. B. There are many sellers, and so the market process generates an equilibrium price that cannot be influenced by any one seller. Thus they have no choice but to take the price generated by the market process. C. Sellers in a competitive market have the power to influence price by colluding with one another and using quotas to limit overall market output and thus raise price. D. Individual buyers in a competitive market have the power to influence price, and thus can impose prices and other conditions on powerless sellers.
How do actively managed funds differ from passively managed funds?
A. Managers of actively managed funds use their discretion to buy and sell assets as they attempt to generate higher returns. B. Actively managed funds focus on stocks; passively managed funds focus on bonds. C. Actively managed funds necessarily contain a greater variety of stocks or bonds than does a passively managed fund. D. Actively managed funds consistently outperform passively managed funds.
As you move up an indifference curve, the absolute value of the slope
A. decreases. B. remains constant. C. increases. D. initially increases and then decreases.
If we look at real and nominal interest rates in the United States since 1971, we see that
A) the real interest rate has almost always been less than the nominal interest rate because of inflation. B) at times the nominal interest rate has been greater than the real interest rate and at times has been less than it. C) the difference between the nominal and real interest rates has widened during the 1990s because of inflation. D) the nominal interest rate has always been less than the real interest rate because of inflation. E) both the nominal and real interest rates were negative in the highly inflationary 1970s.