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:

Price Level

The mean of current prices for all goods and services created within the economy.

Rate of Inflation

The percentage increase in the general level of prices for goods and services in an economy over a given period.

Lagging Economic Indicator

Refers to statistics that tend to change after the economy has already begun to follow a particular trend, and are used to confirm patterns seen in leading indicators.

Unemployment Rate

The proportion of the workforce that is unemployed and actively looking for work.