Discuss the special characteristics of an information product, and explain the implications for a producer's short-run average and marginal cost curves- In addition, explain why having a price equal to marginal cost is not feasible for the producer of an information product.

Why do you suppose that business schools with weaker programs typically display their category ratings on billboards, whereas those with stronger programs usually do not place ads on billboards at all?

Other things being equal, how did the entry of Keurig into this industry likely initially affect the demand for items produced and sold by SodaStream?

Take a look at the panel (a) of Figure 25-1, and assume that it initially applies to a typical firm in a monopolistically competitive industry. Explain how it might be possible for this firm temporarily to find itself in a situation such as that depicted in panel (b) during the process of adjustment from panel (a) to a final long-run equilibrium as shown in panel (c).

Classify each of the following as an example of direct, interactive, and/or mass marketing.

a. A cosmetics firm pays for full-page display ads in a number of top women's magazines.

b. A magazine distributor mails a fold-out flyer advertising its products to the addresses of all individuals it has identified as possibly interested in magazine subscriptions.

c. An online gambling operation arranges for pop-up ads to appear on a digital device's screen every time a person uses a media player to listen to digital music or play video files, and clicking on the ads directs an individual to its Web gambling site.

d. A car dealership places advertisements in newspapers throughout the region where potential customers reside.

Describe the fundamental properties of information products and evaluate how the prices of these products are determined under monopolistic competition.