1)

Manufacturers of laundry detergent and dishwashing soap reinvest a relatively large percentage of their sales revenues on advertising campaigns.

Most of these advertisements that appear on television stress the fact that their product is "New and Improved.

" Why? Please give an explanation and include a discussion of the type of market (perfect competition, monopoly, monopolistic competition, oligopoly) this might be.

2)

A Wholesale Distributor, Fish Ltd, is a public corporation and has taxable income of $400,000 for the year. What is Fish Ltd's federal tax payable for the year?

a.51,000

b.64,000

c.116,000

d.70,000

Canada

3)

Give an example of a government-created monopoly. Is creating this monopoly necessarily bad public policy?

Define natural monopoly.

What does the size of a market have to do with whether an industry is a natural monopoly?

Why is a monopolist's marginal revenue less than the price of its good?

Can marginal revenue ever be negative?

Explain.