What arguments can be made in favor of product differentiation and advertising?
What will be an ideal response?
First, consumers are provided with a large variety of products. Variety is important in ensuring that all consumers are satisfied. Product differentiation leads to innovation, giving us products we didn't have in the past. Product quality is also enhanced because firms have their reputation (and brand name) at stake. In addition, advertising can help consumers make informed, rational choices.
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A time series graph
A) uses bars rather than lines. B) is not useful if the goal is to determine a variable's trend. C) shows points that are scattered. D) depicts a series of good economic times a nation had. E) shows how a certain variable changes over time.
What are some reasons that an "emerging market" country may choose a fixed exchange rate regime?
What will be an ideal response?