If Advertising Increases the Numbers of Firms in an Industry,each

question 119

Multiple Choice

If advertising increases the numbers of firms in an industry,each firm's demand

• A) increases.
• B) does not change.
• C) decreases.
• D) might increase or decrease depending on whether the new firms produce exactly the same product or a product that is slightly differentiated.
• E) None of the above answers is correct.

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Definitions:

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without any need for prior learning or conditioning.

Conditioned Response

is a learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Pavlov

A Russian physiologist best known for his work in classical conditioning, particularly the concept of the conditioned reflex using dogs.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a reflexive or unlearned response.