Why Might a Purely Competitive Industry Advertise,even If Individual Firms

question 2

Multiple Choice

Why might a purely competitive industry advertise,even if individual firms do not?

• A) The industry can selectively promote firms and force some out of business.
• B) An industry can advertise to promote its products without shifting the average total cost curve for individual firms.
• C) The industry hopes to boost overall demand for the substitute goods.
• D) An industry cannot advertise because it is not an actual business.
• E) An industry would never advertise in a purely competitive market.

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Definitions:

Feedback

Information provided regarding aspects of one’s performance or behavior, which is aimed at improving or reinforcing actions or behaviors.

Appreciation

Recognition and enjoyment of the good qualities of someone or something, often leading to expressions of gratitude or acknowledgment.

Positive Reinforcement

A method in behavior management that involves rewarding desired behaviors to encourage their recurrence.

Common Misconception

A widely held but incorrect belief or understanding.