Q: All of the following choices are examples of promoting a firm’s product
All of the following choices are examples of promoting a firm’s product, except a. celebrity endorsements. b. pricing c. discount coupons. d. end-of-aisle displays.
See AnswerQ: A firm that acquires a substitute product can reduce cannibalization by
A firm that acquires a substitute product can reduce cannibalization by a. doing nothing. b. repositioning a product so that it does not directly compete with the substitute. c. setting the same pri...
See AnswerQ: A shoe-producing firm decides to acquire a firm that produces
A shoe-producing firm decides to acquire a firm that produces shoe laces. This implies that the firm’s aggregate demand (shoes + laces) will be: a. less elastic than the individual demands. b. more el...
See AnswerQ: After firm A producing one good acquired another firm B producing another
After firm A producing one good acquired another firm B producing another good, it lowered the prices for both goods. One can conclude that the goods were a. substitutes. b. complements. c. not rela...
See AnswerQ: Firms tend to raise the price of their goods after acquiring a
Firms tend to raise the price of their goods after acquiring a firm that sells a substitute good because a. they lose market power. b. there is an increase in the overall demand for their products....
See AnswerQ: For products like parking lots and hotels, costs of building capacity
For products like parking lots and hotels, costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints. Therefore, a. if MR>MC at capacity, then...
See AnswerQ: A firm started advertising its product and this changed the product’s elasticity
A firm started advertising its product and this changed the product’s elasticity from -2 to -1.5. The firm should a. raise price from $10 to $15. b. reduce price from $15 to $10. c. raise price from...
See AnswerQ: After running a promotional campaign, the owners of a local hardware
After running a promotional campaign, the owners of a local hardware store decided to decrease the prices for the advertised prices sold in their store. One can infer that a. the promotional expenditu...
See AnswerQ: Which of the following is an example of moral hazard?
Which of the following is an example of moral hazard? a. High-quality products being driven out of a market by low-quality products. b. A local charity raising insufficient funds because no one contri...
See AnswerQ: On average, if demand is unknown and costs of underpricing are
On average, if demand is unknown and costs of underpricing are _______ than the costs of overpricing, then _________. a. smaller; overprice b. smaller; underprice c. larger; underprice d. None of t...
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