Answer the following statements true (T) or false (F)
1) Generally, the goal of false advertising is to increase a firm's sales and profit.
2) Advertising can easily misinform buyers about the characteristics of an inspection good.
3) Unlike experience goods, the potential to lose repeat sales is not necessarily a deterrent to false advertising a credence good.
4) The impact of truthful advertising on a firm's demand is most relative to firms selling inspection goods rather than credence goods.
5) False advertising is more profitable and more prevalent in communities with a large number of transient consumers.
1) TRUE
2) FALSE
3) TRUE
4) FALSE
5) TRUE
You might also like to view...
To calculate the opportunity cost per unit, you divide the decrease in the quantity of the forgone item by the
A) decrease in the quantity of the other item. B) increase in the quantity of the other item obtained. C) price of the item obtained. D) price of the item forgone. E) price of the item obtained and then multiply by the price of the item forgone.
Refer to the figure above. Which of the following statements is true?
A) Ryan has a comparative advantage in the production of Good 1, whereas Tom has a comparative advantage in the production of Good 2. B) Ryan has a comparative advantage in the production of Good 2, whereas Tom has a comparative advantage in the production of Good 1. C) Ryan has a comparative advantage in the production of both the goods. D) Tom has a comparative advantage in the production of both the goods.