Which of the following statements is correct?
a. The more similar Firm A's product is to Firm B's product, the more likely Firm A is to advertise.
b. Monopolistically competitive firms advertise in order to increase the elasticity of the demand curve they face.
c. According to the signaling theory, the more product information an advertisement contains, the more effective it is.
d. Brand names may help consumers if they provide information about the quality of a product when acquiring such information is difficult.
d
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Which of the following describes a situation in which demand must be elastic?
a. Total revenue increases by 15 percent when the price of corndogs rises by 15 percent. b. Total revenue increases by less than 15 percent when the price of corndogs rises by 15 percent. c. Total revenue decreases by more than 15 percent when the price of corndogs rises by 15 percent. d. Total revenue increases by $15 when the price of corndogs rises by $15. e. Total revenue increases by more than $15 when the price of corndogs rises by $15.
Which of the following is likely to increase the supply of labor?
a. a decrease in the population b. a relaxation of restrictions on immigration c. a decrease in fringe benefits d. an increase in the value placed on leisure