Solved by verified expert :16. Policymakers have generally come to accept
the view that advertising enhances the efficiency of markets.
17. Critics of advertising that focuses on
product characteristics argue that it leads to less elastic demand for
products.
18. Economists who argue that advertising
enhances market efficiency suggest that celebrity advertising signals inferior
product quality.
19. When McDonalds opens a store in Dhaka,
Bangladesh, it has a strong incentive to enforce product quality consistent
with stores in the United States.
20. The Mikati Philippines Hard Rock Cafe has the
exact same menu as the Hard Rock Cafe in New York. This is an example of a
brand name enhancing market efficiency for U.S. tourists visiting the
Philippines.
21. Empirical evidence suggests that advertising
usually leads to an increase in the price for advertised products.
22. Advertising during the Super Bowl is an
example of information about quality contained primarily in the existence and
expense of the advertising.
23. Brand names are rarely used to convey
information about product quality.
24. The “competition” in
monopolistically competitive markets is most likely a result of having many
sellers in the market.
25. There is general disagreement among
economists about the role of advertising but there is widespread agreement
about the role of brand names on market efficiency.
26. The government of Italy will not allow any
Hard Rock Cafe restaurants to open in Italy. Defenders of the efficiency of
brand-name markets would argue that this has hampered restaurant market
efficiency in Italy.
27. The debate over whether advertising serves a
valuable purpose in society is definitively answered by economists who study
the tastes and preferences of individuals.
28. The claim that advertising reduces the
elasticity of demand is likely to be made by a defender of advertising.
29. If advertising decreases the elasticity of
demand for specific brand names of hard liquor, we would expect firms to be
more able to exercise market power as a result.
30. When poor-quality products are advertised
using cheap advertising consumers learn to ignore such cheap advertising.
