Complete the table for a Taco Bell burrito special, using any numbers you wish, to illustrate the impact on Taco Bell of (1) Wendy's most effective advertising and (2) its more moderate effective advertising. Explain your choices.
Answer to relevant QuestionsWhat does the statement "in monopoly, the firm is the industry" mean? Economists refer to perfectly competitive firms as price-takers and to monopolies as price-makers. Why? Make the argument that consumers are better off when the economy's market structures are more competitive than monopolistic. Suppose you were managing a firm in unbal anced oligopoly and your market share was less than 5 percent. Describe how your price and output levels would be determined. What are the differences among horizontal, ver tical, and conglomerate mergers? Give examples of each.
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