Question titleist has an advertising slogan the 1 ball in, Ask an Expert

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Question: Titleist has an advertising slogan, "The #1 ball in golf." Consumers can also buy generic golf balls. The manufacturers of generic golf balls do not engage in any advertising. Assume that the average total cost of producing Titleist and generic golf balls is the same.

a. Create a graph showing the price and the markup for Titleist.

b. In a separate graph, show the price and output for the generic fi rms.

c. Who has a stronger incentive to maintain strict quality control in the production process-Titleist or the generic fi rms? Why?

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