Which of the Following Statements Supports the Ideology That Advertising

question 50

Multiple Choice

Which of the following statements supports the ideology that advertising equals market power?

• A)Advertising does not change the way customers value various product attributes.
• B)Industry prices of products in the market decrease as a result of advertising.
• C)Advertising encourages new brands to enter the market.
• D)Only the relationship between price and quality affects elasticity for a product.
• E)Firms are insulated from market competition and they can be more discretionary.

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