Which of the Following Statements Is Not Correct

question 308

Multiple Choice

Which of the following statements is not correct?

• A)Critics of advertising argue that firms advertise to manipulate consumers' tastes.
• B)Defenders of advertising argue that advertising provides valuable product information to consumers.
• C)An industry with many brand name products will be more competitive than one with many generic products.
• D)The willingness of a firm to spend a large amount of money on advertising can signal the quality of the product.

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Definitions:

Shirking

Working at less than the expected rate of productivity, which reduces output. Shirking is more likely when workers are not monitored, so that the cost of lower output falls on others.

Corporate Business Structure

Corporate business structure refers to the legal organization of a company, often characterized by the issuance of shares, a board of directors, and liability protection for its shareholders.

Productive Contribution

The input or service provided by a factor of production towards the making of goods and services.

Corporate Form

A legal structure for businesses recognized as separate entities from their owners, providing limited liability protection and enabling easier access to capital.