Firms that sell highly differentiated consumer goods, such as over-the-counter drugs, soft drinks, breakfast cereals, and dog food, typically spend between 10 and 20 percent of revenue for

One of the primary reasons that Mexico has had trouble attracting foreign investment and has therefore experienced relatively low rates of economic growth is

A) poor public education and health. B) the failure to enforce the rule of law. C) low rates of saving and investment. D) persistent wars between Mexico and its neighboring countries.

As the level of competition in an industry increases, the price-cost margin approaches:

A) 0. B) 1. C) 10. D) infinity.