Question 1

What is the difference between the terms "marketing" and "advertising"?

Accepted Answer

The answer of What is the difference between the terms...

Question 2

In the highly competitive fast-food restaurant market,brand name restaurants have a strong profit incentive to maintain high sanitary conditions and avoid any negative consequences.

Accepted Answer

Brand name restaurants rely heavily on their reputation and customer loyalty, which can easily be damaged by negative publicity related to poor sanitary conditions. Therefore, they have a strong profit incentive to maintain high sanitary conditions and avoid any negative consequences.

Question 3

A firm that successfully differentiates its product or lowers its average cost of production creates
A) value for its customers.
B) entry barriers into its market.
C) a perfectly inelastic demand curve for its product.
D) economies of scale.

Accepted Answer

The answer of A firm that successfully differentiates its product...

Question 4

To maximize their profits and defend those profits from competitors,monopolistically competitive firms must
A) lobby government to erect barriers to entry in their industries.
B) limit foreign competition in their markets by encouraging the government to impose tariffs and other trade restrictions.
C) differentiate their products.
D) achieve economies of scale.

Accepted Answer

Monopolistically competitive firms must differentiate their products in order to make them appear more desirable to consumers than the products of their competitors. By doing so, they can charge a higher price for their product and capture a greater share of the market. This differentiation can take the form of advertising, unique features or branding, packaging, or even variations in quality.

Question 5

Advertising is the action of a firm that is intended to maintain the differentiation of its product over time.

Accepted Answer

The answer of Advertising is the action of a firm...

Question 6

Why are many companies concerned about brand management?

Accepted Answer

The answer of Why are many companies concerned about brand...

Question 7

Marketing refers to all the activities necessary for a firm to sell a product to a consumer.

Accepted Answer

Marketing includes activities such as market research, product development, promotion, advertising, sales, and customer service, all of which are essential for selling a product to a consumer.

Question 8

Which of the following is an example of a factor that a firm's owners and managers can control in making the firm successful?
A) the ability to produce the product at a lower cost
B) changing consumer tastes
C) a rise in the price of a key input, for example, a rise in the price of oil leads to higher energy costs
D) the number of competitors in the market

Accepted Answer

A firm's owners and managers can control the ability to produce the product at a lower cost by implementing cost-saving measures such as improving efficiency, reducing waste, negotiating better deals with suppliers, or investing in new technology. Changing consumer tastes, a rise in input prices, and the number of competitors in the market are external factors that are beyond the control of the firm's owners and managers.

Question 9

A successful trademark is one that becomes a generic name for a product,for example,"Kleenex" has become a generic term for tissues.

Accepted Answer

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Question 10

If buyers of a monopolistically competitive product feel the products of different sellers are strongly differentiated,then the demand for each seller's product is
A) perfectly inelastic.
B) perfectly elastic.
C) relatively inelastic.
D) relatively elastic.

Accepted Answer

The answer of If buyers of a monopolistically competitive product...

Question 11

When a firm has been granted a trademark,which grants legal protection against other firms using the name of the product that has been granted the trademark,the firm
A) still faces the possibility that the name will become widely used and no longer associated with a specific company.
B) does not have to worry about legally enforcing the trademark; this is the responsibility of the legal system.
C) still must apply for a copyright and a patent to ensure that no other firm will use the product's name.
D) must spend an annual amount on advertising the product each year; the amount it must spend is negotiated by the firm and the government agency that grants the trademark.

Accepted Answer

Even with a trademark, a firm may face the risk of genericization, where the name becomes commonly used to refer to any similar product, regardless of the brand. This can lead to the loss of legal protection for the trademarked name.

Question 12

Discuss the role of product differentiation and advertising in monopolistic competition.

Accepted Answer

The answer of Discuss the role of product differentiation and...

Question 13

A franchise is
A) a firm that buys and operates a brand name business in a new market.
B) a firm with the legal right to sell a good or service in a particular area.
C) a firm with no competitors.
D) a branch of a national company.

Accepted Answer

The answer of A franchise is
A) a firm that buys...

Question 14

One goal a firm tries to achieve when it advertises a product is to
A) make the demand curve for the product more elastic.
B) shift the demand curve for the product to the left.
C) make the demand curve for the product unitary elastic.
D) make the demand curve for the product more inelastic.

Accepted Answer

The goal of advertising is to create brand loyalty and differentiate the product from competitors. This can lead to a more inelastic demand curve, meaning that consumers are less sensitive to changes in price and more willing to pay a higher price for the product.

Question 15

Draw a graph that shows the impact on a firm's profit when it increases spending on advertising and the increased advertising has no effect on the demand for a firm's product.

Accepted Answer

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Question 16

Firms use two marketing tools to differentiate their products.What are these two tools?
A) lobbying and word of mouth
B) market research and demand estimation
C) brand management and advertising
D) consumer surveys and market experiments

Accepted Answer

Brand management and advertising are the two marketing tools used by firms to differentiate their products. Brand management involves creating a unique name, design, and image for a product or service, while advertising refers to promoting the product or service through various communication channels to increase brand awareness and sales.

Question 17

________ describes the actions a firm takes to maintain the differentiation of its product over time.
A) Product differentiation.
B) Brand management
C) Aggressive marketing.
D) Advertising

Accepted Answer

Brand management refers to the actions a firm takes to maintain the differentiation of its product over time. This can include strategies such as consistently delivering high quality products, creating a strong brand image, and building customer loyalty through targeted marketing campaigns. Product differentiation, aggressive marketing, and advertising may all be part of a larger brand management strategy, but they do not specifically address the ongoing maintenance of differentiation over time.

Question 18

Why would an organization as large as the National Football League (NFL)incur large legal expenses to try to prevent bars and restaurants from using their trademarked term "Super Bowl" in their advertising?

Accepted Answer

The answer of Why would an organization as large as...

Question 19

Which of the following can a firm use to defend a successful product's brand name?
A) The firm can obtain a patent on the brand name.
B) The firm can apply for a trademark to ban other firm's from using the product's name.
C) The firm can increase the amount it spends on advertising for the product.
D) The firm can attempt to copyright the brand name.

Accepted Answer

The most effective defense for a successful product's brand name is to register for a trademark. This legally protects the brand name and bans other firms from using it. Patents are usually used to protect inventions or designs, not brand names. Increasing advertising spending can help to maintain the product's popularity, but it does not legally protect the brand name. Copyright is usually used to protect original works of authorship, not brand names.

Question 20

Which of the following is true of trademarks?
A) A successful trademark is one that becomes a generic name for a product, for example, "Xerox" has become a generic term for making photocopies.
B) A successful trademark is one that allows consumers to immediately identify the source or producer of the product.
C) If a firm is granted a trademark, then no other firms can legally produce similar products for a given period of time.
D) If a firm is granted a trademark, then no other firms can legally sell in the same geographic area for a given period of time.

Accepted Answer

A successful trademark is one that allows consumers to immediately identify the source or producer of the product. While a trademark holder can take legal action against another firm using the same or similar trademark, it does not necessarily mean that no other firm can legally produce or sell similar products. The trademark only protects the distinctiveness and ownership of the mark itself, not the product or service it represents. A trademark becoming a generic term for a product (such as Xerox for photocopies) is actually detrimental to the trademark holder, as it can result in the loss of distinctiveness and legal protection.

Quiz 13: Monopolistic Competition: the Competitive Model in a More Realistic Setting

What is the difference between the terms "marketing" and "advertising"?

In the highly competitive fast-food restaurant market,brand name restaurants have a strong profit incentive to maintain high sanitary conditions and avoid any negative consequences.

A firm that successfully differentiates its product or lowers its average cost of production creates

To maximize their profits and defend those profits from competitors,monopolistically competitive firms must

Advertising is the action of a firm that is intended to maintain the differentiation of its product over time.

Why are many companies concerned about brand management?

Marketing refers to all the activities necessary for a firm to sell a product to a consumer.

Which of the following is an example of a factor that a firm's owners and managers can control in making the firm successful?

A successful trademark is one that becomes a generic name for a product,for example,"Kleenex" has become a generic term for tissues.

If buyers of a monopolistically competitive product feel the products of different sellers are strongly differentiated,then the demand for each seller's product is

When a firm has been granted a trademark,which grants legal protection against other firms using the name of the product that has been granted the trademark,the firm

Discuss the role of product differentiation and advertising in monopolistic competition.

A franchise is

One goal a firm tries to achieve when it advertises a product is to

Draw a graph that shows the impact on a firm's profit when it increases spending on advertising and the increased advertising has no effect on the demand for a firm's product.

Firms use two marketing tools to differentiate their products.What are these two tools?

________ describes the actions a firm takes to maintain the differentiation of its product over time.

Why would an organization as large as the National Football League (NFL)incur large legal expenses to try to prevent bars and restaurants from using their trademarked term "Super Bowl" in their advertising?

Which of the following can a firm use to defend a successful product's brand name?

Which of the following is true of trademarks?