Advertising can enhance economic efficiency when it:

A) increases brand loyalty.
B) expands sales such that firms achieve substantial economies of scale.
C) keeps new firms from entering profitable industries.
D) is undertaken by pure competitors.

Economic Efficiency

A situation in which resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another's based on their positive experience with that brand.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.