Advertising can impede economic efficiency when it:

A) increases entry barriers.
B) reduces brand loyalty.
C) enables firms to achieve substantial economies of scale.
D) increases consumer awareness of substitute products.

Economic Efficiency

A state in which resources are optimally allocated to serve each person in the best way while minimizing waste and inefficiency.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, stringent regulations, and established brand loyalty.

Brand Loyalty

A customer's consistent preference for one brand over all others, often reflected in repeated purchases.