All,except One,of the Following Statements Are Valid Arguments in Favour

question 31

Multiple Choice

All,except one,of the following statements are valid arguments in favour of advertising.Which one is the exception?

• A)Advertising provides consumers with information.
• B)Advertising reduces the search time needed by consumers to acquire products.
• C)Advertising increases the barriers to entry into an industry and thereby enhances competition.
• D)Advertising can lower the prices of products by reducing the firms' average cost through increased output levels.
• E)Advertising increases the availability of radio and television program choices for the consumer.

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Definitions:

Total Economic Profit

Total economic profit is the difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

Profitable Level

Refers to the point at which a business or operation generates revenue exceeding its costs, leading to financial gain.

Output

is the total amount of goods and services produced by an economy, firm, or production process.

Market Price

The actual selling price of a good or service in the marketplace, influenced by supply and demand.