All,except One,of the Following Statements Are Valid Arguments in Favour

question 31

Multiple Choice

All,except one,of the following statements are valid arguments in favour of advertising.Which one is the exception?

• A)Advertising provides consumers with information.
• B)Advertising reduces the search time needed by consumers to acquire products.
• C)Advertising increases the barriers to entry into an industry and thereby enhances competition.
• D)Advertising can lower the prices of products by reducing the firms' average cost through increased output levels.
• E)Advertising increases the availability of radio and television program choices for the consumer.

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Definitions:

Automated Equipment

Machinery and tools that operate with minimal human intervention, often using technology to perform tasks.

Intangible Benefits

Non-monetary advantages of an action or investment, such as improved employee satisfaction or brand loyalty, which are difficult to quantify.

Discount Rate

The interest rate used to discount future cash flows to their present value, reflecting the opportunity cost of capital.

Net Cash Inflows

The difference between all cash inflows and outflows within a specific period, reflecting the company’s cash position.