Asked by

Alaiya Smith
on Nov 26, 2024

verifed

Verified

Advertising may be an efficiency-enhancing activity when it results in the following, except when it

A) enhances competition among sellers.
B) facilitates the introduction of new products.
C) increases sales thereby allowing firms to obtain economies of scale.
D) makes buyers more brand-attached, making their demand less elastic.

Efficiency-Enhancing

Practices or policies that improve the allocation of resources, resulting in increased productivity and potentially better overall economic outcomes.

Brand-Attached

The emotional connection consumers develop with a specific brand, strongly influencing their purchasing decisions.

Economies of Scale

The price benefits that firms receive by virtue of their size of operations, with each unit's production cost declining as the scale of operations expands.

  • Apprehend the plausible positive and negative fiscal impacts of advertising in the realm of market competitiveness and consumer welfare.
verifed

Verified Answer

TM
Tiffany MurphyNov 26, 2024
Final Answer:
Get Full Answer