When a pharmaceutical company advertises that its allergy medication is clinically proven to alleviate hay fever symptoms, the pharmaceutical company is engaging in

A) informational advertising.
B) trademark protection.
C) persuasive advertising.
D) direct marketing.


Answer: A

Economics

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When a monopolist sells positive levels of output, its demand curve:

A) lies below its marginal revenue curve. B) lies above its marginal revenue curve. C) and marginal revenue curve overlap D) is vertical while its marginal revenue curve is horizontal.

Economics

Refer to Figure 16-3. Suppose Chantal charges all her customers a uniform price of $10 for a haircut. Which of the following statements is true?

A) Chantal is maximizing revenue in market B. B) Chantal is selling more than the profit-maximizing quantity of haircuts in market B. C) Chantal is selling less than the profit-maximizing quantity of haircuts in market B. D) Chantal will earn a greater profit through uniform pricing than if she practices price discriminates.

Economics

Competition for the currently available supply of locations and space coupled with the existing supply of leasable space, determines:

A. the current level of rental rates for each submarket and property B. the riskiness of the expected cash flows of an income-producing property C. the timing of the expected cash flows of an income-producing property D. the cost of financing the purchase of a property

Economics

Considering the concept of compounding, explain why in determining the future value of a $100 investment at 5 percent annual interest, you can't simply multiply $100 by (1.10) and get the correct answer.

What will be an ideal response?

Economics