Critics of advertising argue that in some markets advertising may
a. attract products of lower quality into the market.
b. attract less informed buyers into the market.
c. decrease elasticity of demand allowing firms to charge a larger markup over marginal cost.
d. enhance competition in markets to an unnecessary degree.
c
Economics
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A monopolistically competitive firm in the long run will
A. have a demand curve tangent to its AC. B. have a demand curve below its AC. C. have a demand curve above its AC. D. operate where excessive profit can be achieved.
Economics
A mortgage, where the monthly payments are the same for the duration of the loan, is an example of a(n):
A. installment loan. B. equity security. C. variable payment loan. D. fixed payment loan.
Economics