A New Brewing Company Announces That It Is Releasing a New

question 180

Multiple Choice

A new brewing company announces that it is releasing a new organic ale into the beer market.You can assume that the market for beer is characterised by monopolistic competition.According to the information provided, existing brewing companies are likely to experience what kind of externality as a result of the new ale?

• A)product-variety
• B)competitive
• C)advertising
• D)business-stealing

---

Definitions:

Bond Discount

The difference between the face value of a bond and the price for which it is sold, when the bond is sold for less than its face value.

Operating Activities

Operating activities relate to the primary, day-to-day activities of a business such as selling products, manufacturing, and expenses related to administration.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time.