If Advertising Increases the Numbers of Firms in an Industry,each

question 119

Multiple Choice

If advertising increases the numbers of firms in an industry,each firm's demand

• A) increases.
• B) does not change.
• C) decreases.
• D) might increase or decrease depending on whether the new firms produce exactly the same product or a product that is slightly differentiated.
• E) None of the above answers is correct.

---

Definitions:

Industry Versus Inferiority

A stage in Erik Erikson's theory of psychosocial development where children, typically aged 6 to 12, develop a sense of competence through the mastery of tasks.

Psychosocial Crisis

A situation or period of life characterized by challenges in personal and social development, which Erik Erikson identified as part of his theory on the stages of psychosocial development.

Social Structure

The organized pattern of social relationships and social institutions that make up a society, influencing and limiting the choices and opportunities available to its members.

Psychosocial Development

A theory that describes the stages of psychological and social development that humans go through from infancy to adulthood.