Which of the Following Is a Commonly-Cited Benefit of Advertising

question 53

Multiple Choice

Which of the following is a commonly-cited benefit of advertising?

• A)Advertising can be a signal of the quality of a product.
• B)Advertising impedes competition.
• C)Advertising reduces the deadweight loss associated with monopolistic competition.
• D)Advertising encourages free entry, which increases profits.

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Definitions:

Sigmoidoscopy

An inspection of the sigmoid with an instrument.

Pulmonary Function Test

A group of tests that measure how well the lungs take in and release air and how well they move gases such as oxygen from the atmosphere into the body's circulation.

Urinalysis

An analysis of the urine; a test performed on urine to determine its characteristics.

Audiometer

A device to measure the degree of hearing ability.