Demonstrate graphically why persuasive advertising, which makes consumers more loyal to the advertised brand, is likely to increase a firm’s market power (its ability to raise price above marginal cost). Will it necessarily increase profit as well?
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Demonstrate graphically why persuasive advertising which makes consumers more loyal
Demonstrate graphically why persuasive advertising, which makes consumers more loyal to the advertised brand, is likely to increase a firm’s market power (its ability to raise price above marginal cost). Will it necessarily increase profit as well?
Demonstrate graphically why persuasive advertising which makes consumers more loyal
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- The graph depicts the demand curve before advertising, DO, and the four possible demand curves that results from advertising. Which of the four demand curves depicts the two ways that advertising impacts demand?- D1 - D2 - D3 - D4Advertising and sales promotions are ways of persuading consumers to match demand with products offered by sellers. Advertising can be informative or competitive. Explain the good and bad of advertising for society!Discuss to what extent you agree with the following statements. Advertising helps raise revenue for the firms and provides information to the customers; therefore, expenditures on advertising are justified.
- The graph to the right depicts the demand for caffe lattes at a local coffeehouse along with the average total cost and marginal cost of producing lattes. Suppose the coffeehouse is in a monopolistically competitive market in the short run. How many caffe lattes should this coffeehouse produce to maximize profits? units. (Enter a numeric response using an integer.) MC What is the corresponding profit-maximizing price? $ per latte. (Enter a numeric response using a real number rounded to two decimal places.) g 3.2아 을 2.901 АТС Calculate the coffeehouse's profits on caffe lattes. $. (Enter a numeric response using a real number rounded to two decimal places.) 응 2.42 … . 2.00 MR D 38 95 Quantity of caffe lattes (per day) Price and cost (dollars per cup)Advertising is often described as wasteful and useless for consumer. Focusing on what you learned about asymmetric information and price dispersion, is there an economic rationale for advertising? Are there characteristics of certain types of goods that would make advertising information regarding these goods particularly useful to consumer?How does advertising intend to shift demand? How does it intend to change the elasticity of demand?
- Refer to the Front Page to answer two questions. FRONT PAGE Pricing Disney+ Disney decided it wanted to provide streaming services directly to customers, rather than renting its library of films and television shows to other streaming services like Netflix. But how successful would a streaming service be? In other words, what did the demand for a "Disney+" streaming service look like? Disney knew that the number of subscribers would depend not just on the attractiveness of the Disney archives, but also on the subscription price. After doing some market research, Disney decided to launch Disney+ at a price of $6.99 a month (or $69.99 per year). When Disney+ was launched on November 12, 2019, 10 million people signed up on the first day-a resounding success!How does the “LIVE TESTS” campaign demonstrate the characteristic ofintegrated marketing communication? What grade would you give “LIVE TESTS” on integrated effectiveness? (was it effective? Explain).Scenario Between recalls on mass-produced commercial dog food and a general understanding of the benefits of a healthier diet for pets, the demand for natural or organic dog food is experiencing a significant increase. Wanda's treats are more expensive than the mass-produced treats found in most grocery and big box stores, but she prides herself on providing high-quality products and believes that her customers are willing to pay the extra money for quality. 1. How does Wanda's strategy of being a high-quality provider take advantage of the shifts in consumer demand for healthy dog treats? 2. Identify and describe an event that might occur in the economy that would cause Wanda's strategy to no longer be successful for Salty Pawz. If this event occurred, What actions would Wanda have to take in response, and what impact might they have on her business?
- In which type of market, monopolistic or competitive market, is the equilibrium market price lower? Why?Which of the following is not ever considered a cost of advertising from society's perspective? Decreased government revenue Waste of resources Misleading of vulnerable people Decreased competitionWhat distinguishes persuasive advertising from informative advertising? O Persuasive advertising focuses on brand reputation by frequent reminders of awards won by brand. O Persuasive advertising relies on statistics summarizing customer reviews. O Persuasive advertising focuses on emotions and provides few facts about the product. Persuasive advertising uses facts about the product to convey its excellence.