Why Might a Purely Competitive Industry Advertise,even If Individual Firms

question 2

Multiple Choice

Why might a purely competitive industry advertise,even if individual firms do not?

• A) The industry can selectively promote firms and force some out of business.
• B) An industry can advertise to promote its products without shifting the average total cost curve for individual firms.
• C) The industry hopes to boost overall demand for the substitute goods.
• D) An industry cannot advertise because it is not an actual business.
• E) An industry would never advertise in a purely competitive market.

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Definitions:

Unverified Belief

A conviction or opinion that is accepted without evidence or proof, often based on hearsay or assumption rather than fact.

Jargon

Specialized terminology associated with a particular field, profession, or group, often difficult for outsiders to understand.

Non-verbal Communication

The process of conveying a message without the use of words, through body language, gestures, facial expressions, and other physical cues.

Downsizing

The process by which a company reduces its number of employees to cut costs, often leading to organizational restructuring.