Which of the Following Is True About Advertising

question 67

Multiple Choice

Which of the following is true about advertising?

• A) If monopolistically competitive firms compete through advertising, that creates brand loyalty, then advertising can be an effective entry cost.
• B) Advertising may be the only way that a new entrant can penetrate a market dominated by long-established firms.
• C) Advertising has no impact on entry costs or market structure.
• D) Both a. and b. above are correct.

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Definitions:

System

A set of principles or procedures according to which something is done; in mathematics, often refers to a set of equations or inequalities.

Elimination

A method used in algebra to solve systems of equations by removing variables to find their values.

Linear Equations

Equations between two variables that produce a straight line when graphed on a Cartesian coordinate system.

Method Of Elimination

A technique for solving systems of equations by adding or subtracting the equations to eliminate one of the variables.