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

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Definitions:

Insiders

Individuals such as directors, senior officers, or any person with access to confidential information about a company, which can influence their decisions on buying or selling the company’s stocks.

Plagiarism

The act of taking someone else’s work and presenting it as your own without mentioning the source.

Presenting

The act of sharing information or ideas to an audience, typically in a formal setting.