Which of the following firms is most likely to spend a large percentage of their revenue on advertising ?

A. the producer of a highly differentiated consumer product
B. the manufacturer of an undifferentiated consumer commodity
C. a perfect competitor
D. The manufacturer of an industrial product
E. The producer of a low-quality product that costs the same to produce as a similar high-quality product

Related Mcqs:

When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?
A. monopolistically competitive B. oligopolistic C. perfectly competitive D. indeterminate from this information...
Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which marginal cost equals ?
A. marginal revenue and then use the demand curve to determine the price consistent with this quantity B. average total cost and then use the supply curve to determine the price consistent with this quantity C. marginal revenue and then use the supply curve to determine the price consistent with this quantity D. average total...
Which of the following is true with regard to monopolistically competitive firms scale of production and pricing decisions Monopolistically competitive firms produce ?
A. at the efficient scale and charge a price equal to marginal cost B. at the efficient scale and charge a price above marginal cost C. With excess capacity and charge a price above marginal cost D. With excess capacity and charge a price equal to marginal cost...
Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. _____ includes practices such as falsely advertising factory of wholesale prices or a large price reduction from a phony high retail price ?
A. Deceptive promotion B. Deceptive packaging C. Deceptive pricing D. Deceptive cost structure...
When you consume good Q, not only do you benefit form consuming the good but other people benefit from your consumption as well, if firms produce good Q where P = MC, firms will be producing ?
A. less than the efficient level of output B. more than the efficient level of output C. so that consumer surplus is zero D. the efficient level of output...
In monopolistic competition of firms are making abnormal profit other firms will enter and ?
A. The marginal cost will shift outwards B. the demand curve will shift inwards C. The average cost will shift downwards D. The average variable cost will increase...
In a competitive labour market firms will hire labour up to the point where the marginal revenue product of labour equals ?
A. total labour cost B. the marginal product C. the price of the product D. the wage rate...
A form of industry structure characterized by a few firms, each large enough to influence market price is ?
A. perfect competition B. monopolistic competition C. oligopoly D. monopoly...
In contestable markets large oligopolistic firms end up behaving like ?
A. monopolistically competitive firms B. a cartel C. perfectly competitive firms D. a monopoly....
Consulting firms that use large-scale econometric models to forecast exchange rate movements are engaging in ?
A. judgmental analysis B. fundamental analysis C. technical analysis D. nontechnical analysis...