Critics of advertising argue that it:
A. lowers price by increasing competition.
B. results in more variety of products.
C. establishes brand loyalty, which promotes competition.
D. serves as a barrier to entry for new firms.
Answer: D
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Consumer surplus
A. is the difference between the maximum price consumers are willing to pay for a product and the lower equilibrium price. B. rises as equilibrium price rises. C. is the difference between the maximum price consumers are willing to pay for a product and the minimum price producers are willing to accept. D. is the difference between the minimum price producers are willing to accept for a product and the higher equilibrium price.
The population of Lucien’s country is currently expanding at a rate of 2 percent, while its output is growing at a rate of 2.5 percent. If the population were to begin increasing at a rate of 3 percent, while output growth stayed at 2.5 percent, the per capita output would ______.
a. remain unchanged b. rise then fall c. rise d. fall
To maximize profits, an airline will offer _____ prices to customers with _____ demand.
A. lower; inelastic B. higher; elastic C. the lowest; the least D. higher; inelastic
Black and Hispanics poverty rates in the United States are about twice as high as Asian and white poverty rates.
Answer the following statement true (T) or false (F)