Which of the following is true of the model of monopolistic competition? a. Barriers to entry enable firms to enjoy positive profits in the long run. b. The number of firms declines over time as a result of economies of scale. c. The monopolistically competitive firms enjoy a greater market power than a monopolist. d. Firms tend to locate near each other in order to minimize total travel costs for consumers. e. The firms end up charging same prices for their individual products. 2. Which of the following is an example of price competition? a. Nike signs LeBron James to a $90 million contract for endorsements. b. Kellogg's puts the images of Snap, Crackle, and Pop on boxes of Cocoa Krispies, linking the cereal with Rice Krispies. c. McDonald's introduces new garden McSalads. d. Tropicana introduces the Blue Raspberry Rush juice. e. Apple offers a 20% discount on its new range of iPhones. For number two, I believe the answer is between a or e, but I am not sure which one is correct. I truly need an explanation for number two
I need help with number 1 because I have no clue which one is correct. I need some sort of explanation
1. Which of the following is true of the model of
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a. |
Barriers to entry enable firms to enjoy positive profits in the long run. |
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b. |
The number of firms declines over time as a result of economies of scale. |
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c. |
The monopolistically competitive firms enjoy a greater market power than a monopolist. |
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d. |
Firms tend to locate near each other in order to minimize total travel costs for consumers. |
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e. |
The firms end up charging same prices for their individual products. |
2. Which of the following is an example of
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a. |
Nike signs LeBron James to a $90 million contract for endorsements. |
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b. |
Kellogg's puts the images of Snap, Crackle, and Pop on boxes of Cocoa Krispies, linking the cereal with Rice Krispies. |
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c. |
McDonald's introduces new garden McSalads. |
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d. |
Tropicana introduces the Blue Raspberry Rush juice. |
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e. |
Apple offers a 20% discount on its new range of iPhones. |
For number two, I believe the answer is between a or e, but I am not sure which one is correct. I truly need an explanation for number two.
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