Among the Following, Which Is NOT an Economic Argument That

question 78

Multiple Choice

Among the following, which is NOT an economic argument that favors advertising?

• A)supports largely unrestricted media that disseminate entertainment as well as news
• B)contributes to increases in the overall economy by increasing brand and generic consumption
• C)persuades rather than informs, providing only positive information
• D)allows companies to achieve economies of scale in production, helping to lower prices of products
• E)provides consumers information that helps them make better decisions about new products, their availability, their prices and their benefits

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Definitions:

Marginal Revenue

The additional revenue that is generated by selling one more unit of a product or service.

Profit-maximizing

A strategy where firms set output and price levels to yield the highest possible profit.

Perfectly Competitive Market

A market structure characterized by many buyers and sellers, homogeneous products, and the freedom of entry and exit, leading to zero economic profit in the long run.

Marginal Revenue

The additional income received from selling one more unit of a product or service.