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Type m difficulty 2 section 172 168 in dollar terms

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TYPE: M DIFFICULTY: 2 SECTION: 17.2168.In dollar terms, the largest form of advertising in the United States is (are)a.billboards.b.newspaper and magazine ads.c.radio ads.d.television ads.ANSWER: b.newspaper and magazine ads.TYPE: M DIFFICULTY: 1 SECTION: 17.2169.Firm A produces and sells in a market that is characterized by highly differentiated consumer goods. Firm B produces andsells industrial products. Firm C produces and sells an agricultural commodity. Which firm is likely to spend the greatestportion of its total revenue on advertising?a.Firm Ab.Firm Bc.Firm Cd.There is no reason to believe that any one of the three firms would spend a greater portion of its total revenue onadvertising than the other two firms.ANSWER: a.Firm ATYPE: M DIFFICULTY: 1 SECTION: 17.2170.The fact that there is a great deal of advertising of men’s shaving products indicates thata.the market for those products is perfectly competitive.b.it costs firms very little to produce those products.c.those products are highly differentiated.
d.All of the above are correct.ANSWER: c.those products are highly differentiated.TYPE: M DIFFICULTY: 2 SECTION: 17.2171.In which of the following product markets are we likely to observe the largest amount of advertising?a.markets in which price exceeds marginal costb.perfectly competitive marketsc.markets in which industrial products are soldd.markets in which there is very little difference between different firms’ productsANSWER: a.markets in which price exceeds marginal costTYPE: M DIFFICULTY: 2 SECTION: 17.2172.Critics of advertising argue that advertisinga.creates desires that otherwise might not exist.b.hinders competition.c.often fails to convey substantive information.d.All of the above are correct.ANSWER: d.All of the above are correct.TYPE: M DIFFICULTY: 1 SECTION: 17.2173.Relative to other advertising expenditures, the largest number of dollars is spent ona.television and radio commercials.b.billboards and other signs.c.space in magazines and newspapers.d.direct mail.ANSWER: c.space in magazines and newspapers.TYPE: M DIFFICULTY: 1 SECTION: 17.2174.A study of the market for optometrists’ services in the 1960s showed thata.all states in the United States prohibited advertising by optometrists.b.almost all professional optometrists opposed legal restrictions on their rights to advertise.c.the average price of eyeglasses would be reduced by the removal of legal restrictions on advertising byoptometrists.d.All of the above are correct.ANSWER: c.the average price of eyeglasses would be reduced by the removal of legal restrictions on advertising by optometrists.TYPE: M DIFFICULTY: 2 SECTION: 17.2175.Which of the following statements is correct? All theoretical arguments point to the fact that advertising leads toa.higher prices and less competitive markets.

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Term
Fall
Professor
CHARTRAND

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