Question : 11) To maximize their profits and defend those profits from : 1387852

11) To maximize their profits and defend those profits from competitors, monopolistically competitive firms must

A) lobby government to erect barriers to entry in their industries.

B) limit foreign competition in their markets by encouraging the government to impose tariffs and other trade restrictions.

C) differentiate their products.

D) achieve economies of scale.

12) A franchise is

A) a firm that buys and operates a brand name business in a new market.

B) a firm with the legal right to sell a good or service in a particular area.

C) a firm with no competitors.

D) a branch of a national company.

13) Which of the following is true of trademarks?

A) A successful trademark is one that becomes a generic name for a product, for example, “Xerox” has become a generic term for making photocopies.

B) A successful trademark is one that allows consumers to immediately identify the source or producer of the product. 

C) If a firm is granted a trademark, then no other firms can legally produce similar products for a given period of time.

D) If a firm is granted a trademark, then no other firms can legally sell in the same geographic area for a given period of time.

14) ________ describes the actions a firm takes to maintain the differentiation of its product over time.

A) Product differentiation

B) Brand management

C) Aggressive marketing

D) Advertising

15) Which of the following can a firm use to defend a successful product’s brand name?

A) The firm can obtain a patent on the brand name.

B) The firm can apply for a trademark to ban other firms from using the product’s name.

C) The firm can increase the amount it spends on advertising for the product.

D) The firm can attempt to copyright the brand name.

16) Firms use two marketing tools to differentiate their products. What are these two tools?

A) lobbying and word of mouth

B) market research and demand estimation

C) brand management and advertising

D) consumer surveys and market experiments

17) When a firm has been granted a trademark, which grants legal protection against other firms using the name of the product that has been granted the trademark, the firm

A) still faces the possibility that the name will become widely used and no longer associated with a specific company.

B) does not have to worry about legally enforcing the trademark; this is the responsibility of the legal system.

C) still must apply for a copyright and a patent to ensure that no other firm will use the product’s name.

D) must spend an annual amount on advertising the product each year; the amount it must spend is negotiated by the firm and the government agency that grants the trademark.

18) One goal a firm tries to achieve when it advertises a product is to

A) make the demand curve for the product more elastic.

B) shift the demand curve for the product to the left.

C) make the demand curve for the product unitary elastic.

D) make the demand curve for the product more inelastic.

19) A successful trademark is one that becomes a generic name for a product, for example, “Kleenex” has become a generic term for tissues.

20) In the highly competitive fast-food restaurant market, brand name restaurants have a strong profit incentive to maintain high sanitary conditions and avoid any negative consequences.