The Demand Curve that Crest (the toothpaste company) faces is flatter than the Demand Curve that Coca-Cola faces. Why, or why not? Make sure to provide supporting arguments. Colgate should spend more

The Demand Curve that Crest (the toothpaste company) faces is flatter than the Demand Curve that Coca-Cola faces. Why, or why not? Make sure to provide supporting arguments.

Colgate should spend more on advertising than Coca-Cola, if we consider the advertising expenditures as a percentage of sales. Why, or why not? Data suggests that Coca-Cola’s spending on advertisement as a percentage of sales is higher than that of Colgate. What could explain the difference?

Illustrate with at least one example from a recent advertisement (on TV, radio, etc.)

  1. Describe two different aspects in which a monopolistically competitive firm behaves like a perfectly competitive firm.
  2. Evaluate the statement and explain why it is correct or incorrect: “The existence of excess capacity makes a monopolistically competitive firm resemble more a perfectly competitive firm.”