Firms decide how much to spend on product development and marketing by
A) spending the same amount as they did in previous years.
B) spending the historical average of 1/4 of total production cost.
C) determining what it will take to eliminate excess capacity.
D) balancing the cost and the benefit of product development and marketing.
E) ensuring that the marginal cost of product development and marketing is less than or equal to the marginal cost of producing the good or service.
D
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Answer the following statement(s) true (T) or false (F)
1. The Robinson-Patman Act was designed to stop resale price maintenance. 2. It is possible for a firm engaging in predatory pricing to make a profit on the good even thought the price is set artificially low. 3. It is possible to avoid the prisoners' dilemma as long as the interaction is repeated and has a definite ending date. 4. Fair trade refers to the fact that retailers are free to set their price in the absence of resale price maintenance. 5. An attorney that finds a loophole in a law has formed a creative response to the law.
If the net benefit of Project A is $10 and that of Project B is $12, which of the following statements is true?
A) An individual can optimize by choosing Project B. B) Switching from Project A to Project B reduces the net benefit by $2. C) An individual can optimize by choosing Project A. D) Switching from Project A to Project B increases the net benefit by $1.2.
How would you describe the consensus of economic thinking on anti-inflationary policies?
What will be an ideal response?
Consumer Sovereignty
- Describe the operation of their "National People Meter Service." How many households are used for this survey?
- Does this survey enhance or reduce consumer sovereignty over the choice of TV programming provided to the public?
- Why is demographic information on viewers of interest to advertisers?
- Does the availability of this demographic information enhance or reduce consumer sovereignty in the markets for the products advertised by sponsors?