Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 16 - Part V - Monopolistic Competition - Problems and Applications - Page 346: 9

Answer

a) a family-owned restaurant b) manufacturer of cars c) a company that invented a very comfortable razor

Work Step by Step

a) Industrial products, such as farms, spend very little on advertising. b) Industrial products, such as forklifts, spend very little on advertising. c) Advertising the very comfortable razor can be seen as a signal of quality (compared to the less comfortable razor).
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