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.

---

Definitions:

Increased Myelination

The process by which the myelin sheath, a protective covering of nerve cells, thickens and increases, enhancing neural transmission.

Frontal Cortex

A region of the brain involved in executive functions such as decision making, problem-solving, and controlling behavior.

Conceptual Categorization

The process by which ideas and objects are recognized, differentiated, and understood through mental grouping based on shared characteristics or themes.

Perceptual Categorization

The cognitive process by which individuals group items based on shared characteristics or perceptual features.