Monopolistic competitors advertise to differentiate their products. advertising can serve at least two useful functions: it can impart information, and it can signal product quality. match the examples to the likely purpose of advertising in each case.

(a) home depot advertises a black friday sale in a weekly circular.
(b) a cadillac commercial shows a famous athlete driving a cadillac.
(c) a bmw billboard introduces the new 3 series and highlights its great gas mileage.
(d) at the opening of a new dealership, mercedes distributes an extravagant brochure.

(1) informative advertising
(2) advertising as part of the product
(3) advertising as a signal

Sarah salesrep is brand new to her job selling "lifetime" printers that never need replacement ink cartridges. the problem is that these printers cost ten times more than a regular printer, so it is difficult to get prospective buyers to understand the cost savings of buying it. to break through the barrier and begin making sales, sarah should use a analysis that highlights her printer's lower cost.

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?

Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?