Which of the Following Statements Show How Advertising Can Increase

question 89

Multiple Choice

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

• A)Advertising causes economies of scale for large organizations.
• B)Advertising informs consumers about product attributes and other details.
• C)Added value created by advertising makes consumers less price-elastic.
• D)Advertising encourages comparison shopping between brands.
• E)Advertising can reduce the barriers to entry by helping new entrants to create awareness.

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Definitions:

Agency

A relationship between two parties, where one party (the agent) is authorized to act on behalf of another (the principal) in business transactions.

Assignments Valid

Transfers of rights, duties, or property that are legally recognized and enforceable.

Notice

Formal communication or warning, often required by law or agreement, to inform a party about an action or condition.

Intended Beneficiary

A third party for whom a contract is created to benefit, giving them certain rights to enforce the contract.