The relationship between advertising and product differentiation is
a. positive; the more differentiated the product, the more a firm is likely to spend on advertising.
b. negative; the more differentiated the product, the less a firm is likely to spend on advertising.
c. zero; there is no relationship between product differentiation and advertising.
d. irrelevant; firms with differentiated products do not need to advertise.
a
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A bond's coupon payment divided by the bond's ________ is equal to the bond's current yield
A) current price B) interest rate C) face value D) principal
A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and the average costs are $65 . In the long run, the firm should
a. Shut down since price is greater than average cost b. Continue operating price is higher than average cost, its making a profit c. Continue operating as the firm is covering all the variable costs and some of the fixed costs d. Shut-down because it is cost effective to pay off the remaining fixed costs