Which of the Following Is a Commonly-Cited Benefit of Advertising

question 53

Multiple Choice

Which of the following is a commonly-cited benefit of advertising?

• A)Advertising can be a signal of the quality of a product.
• B)Advertising impedes competition.
• C)Advertising reduces the deadweight loss associated with monopolistic competition.
• D)Advertising encourages free entry, which increases profits.

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Definitions:

Estrogen

A group of steroid hormones that promote the development and maintenance of female characteristics in the human body.

Upper-Income Persons

Individuals or families that earn significantly more than the average income, placing them in the higher echelons of the economic hierarchy.

Lower Rates

Lower rates typically refer to reduced frequencies, quantities, or financial charges in various contexts, such as interest rates, occurrence of a condition, or pricing.

Arthritis

A group of painful and degenerative conditions marked by inflammation in the joints, causing stiffness and pain.