A Positive Effect of Advertising for Society Is That It

question 117

Multiple Choice

A positive effect of advertising for society is that it

• A) increases market share for the dominant firm in the industry.
• B) provides useful information to reduce search cost for consumers.
• C) raises barriers to entry into the industry and protects existing firms.
• D) creates price leadership and gives firms guidance in dealing with rivals.

---

Definitions:

Diathesis

An inclination or susceptibility toward the development of mental health conditions, shaped by genetic, biological, or external influences.

Homeostatic Adjustment

The process by which living organisms regulate their internal environment to maintain stable, life-sustaining conditions.

Organ Reserve

The excess capacity built into organs, allowing them to cope with extraordinary demands or to compensate for age-related degradation.

Senescence

The process of aging characterized by a gradual decline in physical and cognitive function.