Why might a firm pay a celebrity to endorse its product?
What will be an ideal response?
A firm might pay a celebrity to endorse its product to signal to consumers the product is likely to be popular and appealing.
You might also like to view...
Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates the
A. demand for oranges will necessarily rise. B. price of oranges will fall. C. equilibrium quantity of oranges will rise. D. supply of oranges has declined.
Bubba's Hula Shack bar and bistro has begun giving customers who can show proof that they arrived at the establishment by public transportation a 10 percent discount on their total bill. This is an example of
A) two-part tariff pricing. B) odd pricing. C) arbitrage. D) price discrimination.
A production possibilities frontier that is a bowed-inward line implies
A) economies of scale. B) diseconomies of scope. C) economies of scope. D) no economies of scope.
Economists argue that we can calculate the value of a human life by observing voluntary risks that people take every day
a. True b. False Indicate whether the statement is true or false