An Ad Stressing the Advantages of One Brand of Cookware-Compared

question 141

Multiple Choice

An ad stressing the advantages of one brand of cookware-compared to similar (but unnamed) competitive products-is an example of ______________ advertising.

• A) institutional
• B) comparative
• C) pioneering
• D) primary
• E) competitive

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Definitions:

Perfectly Competitive Firm

A company that operates in a market where there are many buyers and sellers, no barriers to entry or exit, and the firm sells a homogeneous product.

MR

The extra revenue that a firm gains when it sells an additional unit of output, essentially another term for marginal revenue.

AVC

Average Variable Cost, the total variable costs divided by the quantity of output produced.

ATC

Average Total Cost; the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.