Q1. In a market characterized by monopolistic competition, which of the following statements about advertising costs is least accurate? A) Many firms spend a significant portion of their advertising budget on brand name promotion. B) Firms’ advertising costs tend to be greater than those for firms in perfect competition. C) The average total cost attributable to advertising will increase as output increases.
Q2. Which of the following is least accurate with regard to advertising for firms operating under monopolistic competition? A) Advertising may decrease average total cost. B) The increase to average total costs associated with advertising increases as output increases. C) Advertising expenses are high relative to perfect competition and monopoly.
Q3. Which of the following statements is least accurate with regard to the efficiency of monopolistic competition? A) The expense of advertising and promotion may not be justified by their benefit to consumers. B) Consumers benefit from brand name promotion and advertising. C) Monopolistic competition is at least as efficient as perfect competition.
Q4. Which of the following is least accurate regarding product development and marketing for firms under monopolistic competition? A) Relative to other types of competition, product innovation is critical to the pursuit of economic profits. B) Firms that bring new and innovative products to the market face relatively more elastic demand curves than their competitors. C) Brand names can provide consumers with information regarding the quality of firm’s products.
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发表于 2009-1-15 10:17
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