Question

34. Game Theory suggests that oligopolists selling differentiated products

have an incentive to decrease their advertising, but only if their rivals also agree to scale back their advertising

have and incentive to decrease their advertising if the rival firms increase their advertising

have an incentive to increase their advertising no matter what rival firms do about advertising

should always maximize their advertising program in order to assure that they gain customers

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Question 352.5 pts

35. All of the following are characteristic of oligopoly except

have high concentration ratio values

have significant barriers to entry

products are generally non-differentiated

dominated by a few sellers

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Question 362.5 pts

36. Criticisms of monopolistic competitive firm behavior include

resources used in advertising and packaging are wasted and should be used in producing functional goods

advetising raises prices for consumers

advertising increases LRATC

all of these are criticisms of monopolistic competition

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Question 372.5 pts

37. All of the following are characteristic of the advantages (to the firm) of advertising except

advertising changes the shape of the demand curve toward a more inelastic configuration

advertising changes the shape of the demand curve toward a more elastic configuration

advertising shifts the demand curve for their product to the right

advertising provides important information to customers and potential customers