Question

In: Economics

For each of the following pairs of firms, explain which firm would be more likely to...

For each of the following pairs of firms, explain which firm would be more likely to engage in advertising.

a. a family-owned farm or a family-owned restaurant

b. a manufacturer of forklifts or a manufacturer of cars

c. a company that invented a very comfortable razor or a company that invented a less comfortable razor

Solutions

Expert Solution

a. a family-owned restaurant - a restaurant needs customers on a daily basis, whereas a farm usually needs to have ties with sellers who sell their product to the supermarkets.


b. a manufacturer of cars - cars are used commonly by the masses, so advertising would increase the sales exponentially. For forklifts, it's not used commonly, and caters to the construction sector and hence, a word of mouth would be enough.


c. a company that invented a very comfortable razor - they'll have some reality to their adverisements, and would sell their razors around the 'comfortable factor' as the USP.


Related Solutions

For each following pairs of firms, explain which firm would be more likely to engage in...
For each following pairs of firms, explain which firm would be more likely to engage in advertising: a. A family-owned fruit stall or a family-owned restaurant b. A manufacturer of forklifts or a manufacturer of cars c. A company that invented a very reliable watch or a company that invented watch that costs the same amount to make
Choose the amino acid in the following pairs that would be more likely to appear on...
Choose the amino acid in the following pairs that would be more likely to appear on the solvent-exposed surface of a protein and explain why you choose that answer. a) Lys or Leu b) Ser or Ala c) Phe or Tyr d) Trp or Gln e) Asn or Ile
Which company of each of the following pairs would you expect to be more exposed to...
Which company of each of the following pairs would you expect to be more exposed to macro risks? Pick one pair (Pair A or Pair B) and discuss. For example, if you chose Pair A, do you think it is the luxury Montreal restaurant or the established Burger Queen franchise that would be more exposed to macro risks? A luxury Montreal restaurant or an established Burger Queen franchise? B.A paint company that sells through small paint and hardware stores to...
For each of the following pairs of goods, which good would you expect to have more...
For each of the following pairs of goods, which good would you expect to have more elastic demand and why? a) required textbooks or mystery novels? b) Beethoven recordings or classical music recording in general? c) gasoline during the next month or gasoline during the next year? d) root beer or water?
Which enzyme in each of the following pairs would be more limited in its catalytic scope?...
Which enzyme in each of the following pairs would be more limited in its catalytic scope? A) An enzyme that exhibits linkage specificity or an enzyme that exhibits absolute specificity? and B) An enzyme that exhibits group specificity or an enzyme that exhibits stereochemical specificity?
For each of the following pairs of goods, which good would you expect to have more...
For each of the following pairs of goods, which good would you expect to have more elastic demand and why? a. Required textbooks or mystery novels. b. Tim McGraw music or country music recordings in general. c. electricity during the next six months or electricity during the next five years. d. Coke or soda in general.
For each of the following pairs of goods, which good would you expect to have more...
For each of the following pairs of goods, which good would you expect to have more elastic demand. Mansions or rental homes Vanilla ice cream or desserts Subway rides during the next 6 months or subway rides during the next 5 years Pens in general or blue ballpoint pens
For each of the following pairs of goods, which good would you expect to have more...
For each of the following pairs of goods, which good would you expect to have more elastic demand and why? • Required textbooks or fictional novels [2 marks] • Allison Hinds music recordings or soca music recordings in general [2 marks] • Airfare during the next 4 months or airfare during the next 5 years [2 marks] • Fruit juice or water [2 marks]
in the follow pairs, ticks which of the two items is likely to have the more...
in the follow pairs, ticks which of the two items is likely to have the more elastic demand. Giver reason for your answer a. gasoline (all brands ) vs shell gasoline b. holiday abroad vs bread c. salt vs clothing
Which of the following events would make it more likely that a company would call its...
Which of the following events would make it more likely that a company would call its outstanding callable bonds? Market interest rates decline sharply. The company’s bonds are downgraded. The company's financial situation deteriorates significantly. Market interest rates rise sharply. Inflation increases significantly.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT