Nunnsky’s retail sent out newspaper inserts advertising wool suits for $50. in fact, the store had only two, out-of-style suits for sale at this price. their other wool suits started at $175. this constitutes bad faith in its advertising, so consumers may have protection through state consumer protection statutes. a. true. b. false.

Why is the type of product sold in an industry an important characteristic? a firm that can differentiate its product from that of rivals may be able to charge a higher price for a superior product. a firm that sells intangible goods is usually considered a monopoly. service industries cannot differentiate their products, which makes it easy for new firms to enter the industry. expensive products are usually sold by perfectly competitive firms.