Which Statement About How Advertising Affects Competition Is True

question 24

Multiple Choice

Which statement about how advertising affects competition is true?

• A) Advertising by large firms tends to have a limited effect on small firms.
• B) Most single advertisers are large enough to dominate the entire nation.
• C) Advertising is highly regulated so that it does not impede competition.
• D) Intense competition tends to increase the number of businesses in an industry.
• E) Non-advertised products are unable to compete with advertised, branded products.

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Definitions:

People

Human beings collectively, considered as the members of a community, society, or workforce.

Policy Change

A modification or adjustment to existing rules, protocols, or regulations within an organization, system, or government.

Low-Income Families

Households earning significantly below the average income level, often facing financial hardship and limited access to resources.

Equitable

Pertains to fairness or impartiality in the distribution of benefits and burdens within society.