Which of the Following Statements Show How Advertising Can Increase

question 17

Multiple Choice

Which of the following statements show how advertising can increase the cost of a product?

• A)Advertising facilitates economies of scale.
• B)Advertising increases the retail turnover rate of products making small markups possible.
• C)Advertising creates added value to a product through differentiation and makes consumers more price inelastic.
• D)Advertising encourages comparison shopping between brands.
• E)Advertising can make a market more competitive.

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Definitions:

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Formal Rules

Officially sanctioned guidelines and procedures that govern behavior within organizations or societies.

House

Usually refers to the lower chamber of a bicameral legislature, such as the House of Representatives in the United States Congress.

Senate

One of the two houses of the bicameral legislative body in the U.S. federal government, composed of representatives from each state.