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Would a competitive firm ever engage in advertising? Explain.
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- Your company operates in a perfectly competitive market. You have been told that advertising can help you increase your sales in the short run. Would you create an aggressive advertising campaign for your product? in a paragraph explain Why or Why not?Discuss why or why not firms in a perfectly competitive industry are likely to engage in advertising.How does perfect competition effect the pharmaceutical industry?
- Your company operates in a perfectly competitive market. One of your business partners recommends creating an aggressive advertising campaign for your product in order to boost sales. What is wrong with this reasoning?How many brands enter the flat-panel tv market between 2002 and 2007? what will economic profit in the long run?Explain why a perfectly competitive firm won’t advertise.
- What is the best market structure between perfect competition vs monopolistic competition? Why? Explain.What does it mean to say that: “A firm operating under perfect competition conditions is a price taker"?Why Can't this firm set any price it chooses? What if it operates in a monopolistically competitive market, would it be able to set the price? Why? Give some real life examples to support your answer.what are the formulas for each column? what is the profit maximizing output q and p? what is the firms best course of action short and long term?
