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What sets the floor for product prices?

a. product cost

b. competitor's strategies

c. advertising budgets

d. market competition

e. consumer perceptions of the product's value

 

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Romarie Khazandra Marijuan
Romarie Khazandra MarijuanLv10
22 Dec 2020

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Related questions

Critics of advertising argue that firms advertise to manipulate people's tastes and that advertising impedes competition. Identify a product in a monopolistically competitive market. Conduct research to find an advertisement for the product. Provide a link to the ad and answer the following questions:

  1. What does the ad convey regarding the product's price or quality?
  2. How does the ad increase or promote the perception of product differentiation?

 

Price discrimination occurs when

a. the supply of the product is elastic.

b. a product's average cost is greater than its average revenue.

c. a product's average cost is less than its average revenue.

d. differences in a product's price reflect differences in marginal costs.

e. differences in a product's price do not reflect differences in the costs of production.

1. Which of the following would shift a supply curve in a perfectly competitive market for a good?

A.

a change in the number of buyers
B.

a change in input prices
C.

a change in price of a consumption complement
D.

a change in the good's price

2. Which of the following would not occur in the short run if a binding price floor were raised in perfectly competitive market?

A.

an increase in total surplus
B.

a decrease in consumer surplus
C.

a decrease in the quantity actually traded
D.

an increase in gap between quantity demanded and quantity supplied

3. What is price discrimination?

A.

selling products that are similar to, but not exactly the same as a competitor's products
B.

selling the same product to different consumers at different prices
C.

selling a good at a price above marginal cost
D.

selling a good at a price above average variable cost

4. Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity? (Answers must be within 0.10 of the actual value to be counted as correct.)

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