Although advertising raises the price of a monopolistic competitor's product, it does confer a benefit to consumers. Which of the following is a benefit to consumers?
A) Advertised products tend to be of higher quality so consumers feel special when they consume advertised products.
B) Advertising engenders brand loyalty.
C) Advertising could provide consumers with useful information about new products and enable them to comparison shop.
D) Advertising acts as a barrier to entry.
C
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When a monopolist is able to sell its product at different prices to different customers, it is likely engaging in: a. quality-adjusted pricing. b. price discrimination
c. price differentiation. d. illegal activities.
Securitization is the process by which financial institutions
A) pool together a group of loans and then issue securities backed by the pool. B) determine the composition of their assets that will yield the optimal amount of security for their financial health. C) borrow funds from the Federal Reserve and then use those funds to make loans to their customers. D) determine sub-prime mortgage rates.