Which of the Following Statements Can Be Used to Refute

question 6

Multiple Choice

Which of the following statements can be used to refute the argument that advertising reduces the number of choices available to consumers?

• A) Heavily advertised brands dominate the market in certain product categories such as soft drinks, beer, and cereal.
• B) Advertising can be used to create and maintain brand loyalty for dominant brands.
• C) When a successful new product is introduced, competitors quickly follow and use advertising to inform consumers about their brand.
• D) Dominant brands can afford to spend more on advertising and that makes it difficult for smaller brands to compete against them.

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Definitions:

Innocent Misrepresentation

A false statement made by one party to another, where the person making the statement genuinely believes it to be true.

Rescission

Rescission is a legal remedy that cancels a contract and returns the parties involved to their statuses prior to the contract, as if it never existed.

Rescission

The legal act of cancelling a contract and returning the parties involved to their positions prior to the agreement, as if the contract never existed.

Misrepresentation

The act of giving false or misleading information about a material fact in a transaction.