In perfect competition: Select one: a. Firms tend to spend a lot on advertising b. Products are heavily differentiated c. A few firms dominate the market d. There is little incentive for innovation
In perfect competition: Select one: a. Firms tend to spend a lot on advertising b. Products are heavily differentiated c. A few firms dominate the market d. There is little incentive for innovation
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
q16-
In
Select one:
a.
Firms tend to spend a lot on advertising
b.
Products are heavily differentiated
c.
A few firms dominate the market
d.
There is little incentive for innovation
Expert Solution
Step 1
In perfect competition, there are large number of firms producing homogeneous goods with no market power.
Since all firms produce homogeneous products, firms do not spend much on advertising.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education