Firm A produces and sells in a market that is characterized by highly differentiated consumer goods. Firm B produces and sells industrial products. Firm C produces and sells an agricultural commodity. Which firm is likely to spend the greatest portion of its total revenue on advertising?
a. firm A
b. firm B
c. firm C
d. There is no reason to believe that any one of the three firms would spend a greater portion of its total revenue on advertising than the other two firms.
a
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A change in the discount rate is likely to occur
A) after a change in the Treasury bill rate. B) after a change in the Treasury bond rate. C) before a change in the federal funds rate. D) before a change in the inflation rate.
Firms emerge when transaction costs of using the market are less than the cost of hierarchical control
a. True b. False
When economic profits are positive in a perfectly competitive industry,
a. we would expect the market supply curve to shift to the left as a result. b. we would expect the market supply curve to shift to the right as a result. c. we would not expect any change in the market supply curve to result. d. we would expect that the market demand curve to shift right as a result
Although U.S. Steel is integrated into iron ore mining, it currently does not own any of the mines that supply its coking coal because:
a. the company has a high requirement of coking coal which cannot be supplied by a single mine. b. the coal prices are highly unpredictable and volatile. c. there are a limited number of coal suppliers. d. futures and options markets are available for coal.