Consider the following scenario/situation: Levi's is marketing its "Levi's 501" with the frequent use of sales promotions (e.g., Promotional period 1). The company then decides to launch a new brand of jeans - called "Levi's 505". During the launch phase for the second brand of jeans, a number of promotional activities are used (Promotional period 2). Please examine the market share curves for both brands of jeans and answer the three questions that follow. image.png a). In a few brief sentences, explain if the first promotional effort (promotion period 1) for Levi's 501 can be considered a successful promotion. Please justify and explain why? (20 points) b) Go back to the Levi's case above: in a few brief sentences, explain if the second promotional effort (promotion period 2) that was used to launch Levi's 505 is a successful promotion or not? Why? (20 points) c) Do you think companies will benefit from introducing new brands that are similar? Explain why. (10 points).

Analyse one way a manufacturer of jeans could try to increase market share.

Consider a monopolistically competitive market with N firms.Each firm's business opportunities are described by the following equations: Demand: Q=100/N-P Marginal revenue: MR=100/N-2Q Total cost: TC=50+Q^2 Marginal cost: MC=2Q a) How does N, the number of firms in the market, affect each firm's demand curve? Why? b) How many units does each firm produce? (The answers to this and the next two questions depend on N.) c) What price does each firm charge? d) How much profit does each firm make? e) In the long run, how many firms will exist in this market?

2. Imperfectly competitive firms have a demand curve that ________ and a marginal revenuecurve that ________ and is ________ the demand curve.A) is horizontal; is horizontal; the same asB) is horizontal; slopes downward; belowC) slopes downward; slopes downward; belowD) slopes downward; is horizontal; aboveE) slopes downward; slopes downward; the same as

Compared to advertising - marketers spend twice as much on sales promotions.Question 2AnswerTrueFalse

Multiple Choice QuestionWhat is the most typical promotional objective for a company?Multiple choice question.Increase demand for a productStabilize salesRemind customers that company is still aroundLower costs of production