Why cost of advertising be relevant to a consumer decision

Reference no: EM131919278

Problem

1. Why might the cost of advertising be relevant to a consumer's decision about which brand of a product to purchase?

2. Suppose that the market for e-readers is an oligopoly controlled by Amazon.com, Barnes and Noble, Sony, and Apple. Barnes and Noble is considering increasing its output. How would this affect the market price? How would it affect the profits of each company?

Reference no: EM131919278

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