Which of the Following Statements Is Correct

question 119

Multiple Choice

Which of the following statements is correct?

• A)The more similar Firm A's product is to Firm B's product, the more likely Firm A is to advertise.
• B)Monopolistically competitive firms advertise in order to increase the elasticity of the demand curve they face.
• C)According to the signaling theory, the more product information an advertisement contains the more effective it is.
• D)Brand names may help consumers if they provide information about the quality of a product when acquiring such information is difficult.

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Definitions:

Floodplain

A flat area of land adjacent to a river or stream that experiences occasional or regular flooding.

Flooded

Describes areas that have been overwhelmed with water, often due to excessive rainfall, river overflow, or dam failure.

Terrace

A relatively level or gently inclined surface or bench bounded on one edge by a steeper descending slope.

Entrenched Meanders

Deeply incised meanders in a river or stream that retain their winding course because the land elevation change has been rapid compared to the lateral motion of the river.