Which of the Following Is TRUE

question 143

Multiple Choice

Which of the following is TRUE?

• A) There is no role for advertising in perfect competition.
• B) Firms in monopolistic competition and oligopoly use advertising in expectation of increasing profit.
• C) Advertising has costs but few if any benefits.
• D) There is no role for advertising in perfect competition, and firms in monopolistic competition and oligopoly use advertising in expectation of increasing profit.

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Definitions:

Hierarchies

Systems or organizations in which members are ranked one above the other according to status or authority.

Free Market System

An economic system based on supply and demand with minimal government intervention, where prices for goods and services are determined freely by the open market.

Cluster

A group of similar things or people positioned or occurring closely together, often used to refer to a statistical analysis method that identifies groups of similar data points.

Wants and Needs

Desires (wants) are wishes or aspirations not necessary for survival, whereas needs are essential for basic human survival.