Advertising can impede economic efficiency when it:

A) reduces entry barriers.
B) reduces brand loyalty.
C) leads to greater monopoly power.
D) provides consumers with useful information about product quality.

Economic Efficiency

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

Entry Barriers

Obstacles that make it difficult for new firms to enter a market, including high start-up costs, stringent regulations, and strong incumbent competition.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing brands due to preference or satisfaction.