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[answered] 1)Evaluate the statement: The Demand Curve that Crest (the


1)Evaluate the statement: The Demand Curve that Crest (the toothpaste company) faces is flatter than the Demand Curve that Coca-Cola faces? Why, or why not? Make sure to provide supporting arguments.


2)?Evaluate the statement: Colgate should spend more on advertising than Coca-Cola, if we consider the advertising expenditures as a percentage of sales. Why, or why not? Data suggests that Coca-Cola?s spending on advertisement as a percentage of sales is higher than that of Colgate. What could explain the difference?


3)Provide one argument pro and one against advertising. Illustrate with at least one example from a recent advertisement (on TV, radio, etc.)


4)Describe two different aspects in which a monopolistically competitive firm behaves like? a perfectly competitive firm.


5)Evaluate the statement and explain why it is correct or incorrect: ?The existence of excess capacity makes a monopolistically competitive firm resemble more a perfectly competitive firm?.

 


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