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.

---

Definitions:

Naval Guns

Naval guns are large caliber artillery pieces mounted on ships, used historically in naval warfare to engage other ships or fortifications.

Major Export

The primary good or service sent from one country to another for sale or trade, often a significant part of a nation's economy.

High-Fashion

Refers to the creation and industry surrounding luxury clothes, accessories, and trends, often showcased in fashion shows.

Bureaucracy

A system of government in which most of the important decisions are made by state officials rather than by elected representatives.