When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?

Related Mcqs:

When ________ substitutes exist, a monopolist has ________ power to raise price?

A. more; more B. fewer; less C. more; less D. no; infinite...

Which of the following statements best describes the outcome under monopolistic competition ?

A. In monopolistic competition, there are too many firms and each firm produce a slightly different product at a scale that is less than optimal B. In monopolistic competition there are too few firms and each firm produce a slightly different product at scale that is greater than optimal C. in monopolistic competition there is … Which of the following statements best describes the outcome under monopolistic competition ?Read More...

Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?

A. downward sloping to the right B. U-shaped C. Horizontal D. upward sloping to the right...

The slope of marginal revenue curve is ?

A. always equal to one. B. half as steep as the demand curve C. the same as the slope of the demand curve D. twice as steep as the demand curve...

The kinked demand curve model of oligopoly assumes the elasticity of demand ?

A. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease B. is perfectly elastic if price increases and perfectly inelastic if price decreases C. is constant regardless of whether price increase of decrease. D. in response to a price increases is more elastic than … The kinked demand curve model of oligopoly assumes the elasticity of demand ?Read More...