Friday
December 19, 2014

Homework Help: Economics

Posted by Bill on Tuesday, May 10, 2011 at 7:58pm.

Budweiser (now owned by a Belgium based beer company), Miller and Coors who together produce 85% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands. Obviously, if one firm is advertising its brands heavily, the others must also advertise to defend their market shares.

Do you think these firms would welcome congressional legislation which restricted the amount that any one firm could spend on advertising to $1 million yearly, and thereby allowed them all to drastically reduce their costs without fear of losing ground to each other? Are wireless telephone companies in the US market pursuing this scenario compatible with the practice of non-price competition? Explain your answer in both cases.

My answer would probably be yes in both scenarios because it would cost less to advertise because of the limitations. However I would think that if you had a limit there is no way to really out do the competitor.

Help please. Thanks

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

MicroEconomics - If Budweiser, Miller and Coors, who together produce 80% of all...
Micro Econ - Budweiser, Miller and Coors, who together produce 80% of all beer ...
management - Yuengling’s beer sales were up 225% in the last six years, but that...
human resources - Yuengling’s beer sales were up 225% in the last six years, but...
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 ...
Economics - Pat and Kris are roommates. They spend most of their time studying, ...
Math-Value of Mean - A brewery has a beer dispensing machine that dispenses beer...

Search
Members