Homework Help: MicroEconomics

Posted by Adam on Thursday, April 2, 2009 at 4:06pm.

If Budweiser, Miller and Coors, who together produce 80% of all beer consumed in the US, each spend well over $500 million a year on television advertising campaigns, promoting their beer brands. Would these firms welcome congressional legislation which restricted the amount that any one firm could spend on advertising to $5 million yearly, and thereby allowed them all to reduce their costs dramatically without fear of losing ground to each other?

MicroEconomics - economyst, Thursday, April 2, 2009 at 5:37pm
Good tough question in which there is no right answer. But take a shot, what do you think.

Hint: Cigarette makers welcomed a similar restriction in 1971
Hint 2: what do you think is the price elasticity of beer?

Answer this Question

Related Questions

Micro Econ - Budweiser, Miller and Coors, who together produce 80% of all beer ...
Economics - Budweiser (now owned by a Belgium based beer company), Miller and ...
Economics - Poland Spring, Dasani and Aquafina who together produce 90% of all ...
math - Lehen Vinters imports a certain brand of beer. The demand, which may be ...
math - Lehen Vinters imports a certain brand of beer. The demand, which may be ...
math - Lehen Vinters imports a certain brand of beer. The demand, which may be ...
Accounting - Appalachian Register, Inc. (ARI) has current sales of $50 million. ...
math - Estimate the amount of gasoline consumed by automobiles in the USA each ...
math - In the U.S., 4634 million pounds of apples were consumed in 2002. The ...
management - Yuengling’s beer sales were up 225% in the last six years, but...

For Further Reading

First Name:
School Subject:
Answer: