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Question: For each of the following pairs of firms, which firm would likely spend a higher proportion of its revenue on advertising? Explain.

a. the maker of Bayer Aspirin or the maker of generic aspirin

b. a firm introducing a low-quality ice cream or a firm introducing a high-quality ice cream that each cost about the same to make

c. John Deere farm tractor division or John Deere lawn mower division

d. the bakery that bakes Old Home Wheat Bread or a wheat farmer

Microeconomics, Economics

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