Which of the Following Is a Commonly-Cited Benefit of Advertising

question 53

Multiple Choice

Which of the following is a commonly-cited benefit of advertising?

• A)Advertising can be a signal of the quality of a product.
• B)Advertising impedes competition.
• C)Advertising reduces the deadweight loss associated with monopolistic competition.
• D)Advertising encourages free entry, which increases profits.

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Definitions:

Timely Feedback

Prompt and constructive responses provided to questions or tasks, facilitating improvement and learning.

Geographically Dispersed

Refers to entities (people, objects, or organizations) that are spread out over a wide geographic area, not concentrated in one location.

Oral Medium

A method of communication that involves spoken words, as opposed to written or visual forms.

In-Person Channel

A method of communication or interaction that occurs when individuals are physically present in the same location.