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Which of the following market structures would most likely spend the most money on advertising?

Question 5 options:

Monopoly

Oligopoly

Monopolistic competition

Perfect competition

The following table represents the sales figures for the eight largest firms in the auto industry in the U.S. in 2014.The auto industry CR4 equals 68.1%.

CompanySales in billions of dollars

General Motors$84.1

Ford67.0

Toyota66.1

Fiat Chrysler59.2

Honda42.0

Nissan35.9

Hyundai33.7

Volkswagon17.6

Total$405.6

Question 7 options:

a) True

b) False

Game theory can be applied in business, political science, military planning, and sports.

Question 10 options:

a) True

b) False

Question 11(10 points)

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The payoff boxes show the strategic options and corresponding profits for two stores with respect to advertising spending (heavy or light).Based on this information, Target's dominant advertising strategy is to:

Walmart

HeavyLight

Heavy50, 50120, 30

Target

Light30, 120100, 100

Question 11 options:

advertise lightly.

advertise heavily.

do what Walmart does.

do the opposite of what Walmart does.

Question 12(10 points)

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What is the optimal outcome in this scenario for both firms (Target and Walmart)?

Question 12 options:

to advertise lightly.

to advertise heavily.

for Target to advertise lightly, and Walmart to advertise heavily.

for Walmart to advertise lightly, and Target to advertise heavily