This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What arguments can be made against product differentiation and advertising? What will be an ideal ... (Read 156 times)

debasdf

  • Hero Member
  • *****
  • Posts: 570
on: Jun 29, 2018
What arguments can be made against product differentiation and advertising?
 
  What will be an ideal response?

Question 2

If a lower exchange rate spurs exports then why wouldn't it be a good idea of policymakers to intervene to push the exchange rate as low as they can?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Anton

  • Sr. Member
  • ****
  • Posts: 302
Reply #1 on: Jun 29, 2018
Answer to Question 1

Product differentiation and advertising lead to a waste of society's resources. The product of one firm is so close to the product of a competitor. Is it really necessary? Also, advertising may serve as a barrier to entry. It may be costly for a new firm to gain brand recognition.

Answer to Question 2

If a lower exchange rate were the key to growing exports then policymakers could simply push the exchange rate so low that the currency becomes worthless. In this case if would be difficult to see why anyone would continue to accept this nation's currency for payment of goods. Eventually this policy would have the opposite effect and exports would decline. At the same time the lower value of the currency would require consumers to pay even more for imported goods.


debasdf

  • Hero Member
  • *****
  • Posts: 570
Reply #2 on: Jun 29, 2018
Correct answers!


Anton

  • Sr. Member
  • ****
  • Posts: 302
Reply #3 on: Jun 29, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Thyroid conditions may make getting pregnant impossible.

The nucleic acids DNA and RNA are made from chains of nucleotides. The nucleic acids DNA and RNA are made from chains of nucleotides.
Early in the twentieth century, when malnutrition was common, companies such as this one advertised Early in the twentieth century, when malnutrition was common, companies such as this one advertised
EMERGENCY TRAUMA ASSESSMENT MADE EASY EMERGENCY TRAUMA ASSESSMENT MADE EASY
Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period
Rules of Differentiation Rules of Differentiation
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
Video: Hydrogen bonds - role in the body

For a complete list of videos, visit our video library