Asked by Emily Apodaca on Jun 20, 2024
Verified
The case against advertising includes the fact that
A) firms spend large sums of money to create artificial differences among products.
B) it provides consumers with valuable information about product availability, quality, and price.
C) it increases competition by decreasing barriers to entry of new firms into an industry.
D) it ensures high quality and efficient production.
Artificial Differences
Distinctions made based on non-natural or synthetic criteria, often leading to unnecessary or unfounded separation between groups or categories.
Advertising
The action or profession of producing advertisements for commercial products or services to influence consumer behaviors.
- Acknowledge the position and arguments related to advertising in the context of monopolistically competitive markets.
Verified Answer
PV
Paulyn ViloriaJun 23, 2024
Final Answer :
A
Explanation :
Advertising can lead to the creation of artificial differences among products, as firms spend significant amounts of money on marketing strategies to make their products appear unique or superior to those of competitors, even if the actual differences are minimal or non-existent. This can mislead consumers and distort the true nature of product competition.
Learning Objectives
- Acknowledge the position and arguments related to advertising in the context of monopolistically competitive markets.