When a credit card company offers different services with its card, like travel insurance for air travel tickets purchased with the credit card or product insurance for items purchased with the card, the credit card company is trying to
A) shift the demand curve for competing firms to the right.
B) create a perfectly competitive market in which to sell its credit card.
C) create a barrier to entry for competing firms.
D) convince customers that its card has greater value than those offered by rival firms.
D
You might also like to view...
Populists proved themselves to be strong "quantity theory" activists by
(a) pushing the government to provide a general level of money demand that could be kept abreast of farm output. (b) advancing public education and woman suffrage efforts. (c) trying to prohibit corporate subsidies. (d) seeking to reserve land and other natural resources for farm and conservation use.
The result that perfectly competitive firms produce at the lowest per-unit cost is derived from the assumptions of
A. homogeneous products. B. few sellers. C. firms facing horizontal demand curves. D. free entry and exit.
Which of the following is most likely to happen if the Federal Trade Commission (FTC) wins a suit against alleged violators of antitrust law?
a. The FTC will receive compensation up to three times the damage caused. b. The FTC will not be able to impose substantial penalties. c. The FTC will force firms to break up through dissolution. d. The FTC will force firms to merge together. e. The FTC will file criminal actions that may result in fines but not prison sentences.
A differentiated product is one that:
a. is slightly different from the competitor's product, although it is a close substitute. b. is very different. c. is traded within firms and is not for sale in retail markets. d. has a shelf life of less than a year.