--%>
Assignment Help - homework help

Pepsi and Coke market

Some of the consumers strongly prefer Pepsi and some strongly prefer Coke. Thus there is no single market for colas. This statement is true or false ? Explain.
This statement is false. Although some people have strong preferences for a specific brand of cola, the different brands are related enough that they constitute one market. There are consumers, who do not have strong preferences for one kind of cola, and there are consumers who may have preference; however who will also be influenced by price. Given these possibilities, the price of cola drinks will not tend to differ by very much, particularly for Coke & Pepsi.

   Related Questions in Microeconomics

  • Q : Exploitation and the Wage Rate Assume a

    Assume a neither firm possessing both the monopsony power as an employer and the market power in its output market, however which can neither wage discriminate nor price discriminate. In the equilibrium in its labor market for workers, of the given va

    		•
  • Q : Problem onto public sector The word “

    The word “public sector” signifies to: (1) Stockholders and households. (2) Investors and Consumers. (3) Households and investors. (4) Democratic voting systems. (5) All actions of government. Hey frien

    		•
  • Q : Resources and Products Flow Model I

    I have a problem in economics on Resources and Products Flow Model. Please help me in the following question. The eventual owners of all resources and products in the society are as follows: (i) households. (ii) Firms. (iii) The tax-paying public. (iv

    		•
  • Q : Asymmetric information Provide the

    Provide the solution of this question. The problem of asymmetric information is that: A) neither health care buyers nor providers are well-informed. B) health care providers are well-informed, but buyers are not. C) the outcomes of many complex medical procedures cannot be predicted. D) insurance co

    		•
  • Q : Market power as a price maker The only

    The only firm in this figure which has market power as a price maker is: (w) Firm A. (x) Firm B. (y) Firm C. (z) Firm D.

    Q : Increase revenues when price falls When

    When the price elasticity of demand for fried cheesy grits at Pixie’s Breakfast Grill is two, in that case a price cut of $2.80 to $2.00 per serving of grits would be most probably to: (1) reduce Pixie’s revenues from grits by roughly fort

    		•
  • Q : Illustrate ready-to-eat cereal industry

    Brands of ready-to-eat cereal by Kellogg, Post, General Mills and Quaker [for example Frosted Flakes, Raisin Bran and Cheerios] account for more 85 percent of all breakfast cereals sold. Here the ready-to-eat cereal industry is an illustration of: (w)

    		•
  • Q : Production cost according to

    The global wide demand for bicycles would be least probable to be influenced if: (1) Rises in incomes in less developed countries permitted a lot of people to purchase automobiles. (2) Couch-potatoes start heeding their doctor’s suggestion to ex

    		•
  • Q : Relation between average and marginal

    Describe the relation between average revenue and marginal revenue. whenever a firm can sell an extra unit or a good by lowering price.

    		•
  • Q : Increasing cost industry in long run

    When curve C reflects the long run supply curve as in demonstrated figure for this industry, in that case this is a/an: (w) decreasing cost industry. (x) increasing cost industry. (y) constant cost industry. (z) diseconomies of scale industry.