Which Statement Is INCORRECT with Respect to Sales Promotion and Advertising

question 79

Multiple Choice

Which statement is INCORRECT with respect to sales promotion and advertising?

• A) Perfect competition differs from monopolistic competition in that no individual firm in a perfectly competitive market will advertise.
• B) A perfectly competitive firm, by definition, can sell all that it wants to sell at the going market price.
• C) A perfect competitor advertises a product that is different from the products that all other firms in the industry are selling.
• D) Advertising should be carried to the point at which the additional revenue from one more dollar of advertising just equals that one dollar of marginal cost.

---

Definitions:

Technological Advance

(1) An improvement in the quality of existing products, the invention of entirely new products, or the creation of new or better ways of producing or distributing products. (2) Any improvement in the methods by which resources are combined such that the same quantity of inputs can be made to yield a combination of outputs that is preferred to any combination of outputs that was previously possible.

Distributing

The process of making goods or services available to consumers, often through various channels.

Economists' Models

Simplified representations of the real world used by economists to predict economic outcomes and explore economic theories.

Technological Advance

The process of developing and applying new technologies and innovations to improve productivity, efficiency, and offerings in various sectors.