Use the Internet to expand on the Idea of advertising as a barrier to entry by examining the amount of advertising different firms carry out.
Questions:
- Think of three well-know firms for which you often see advertisements. Log on to these firms' websites and evaluate their method of advertising, noting how they attempt to differentiate their products from competitors.
- Is this firm creating an effective barrier to entry?
- Discuss how their method of advertising does or does not serve to reduce the price elasticity of demand and how this will affect price and revenue.
