Which statement about advertising is TRUE?

A) There is no role for advertising in perfect competition.
B) Firms in monopolistic competition and oligopoly use advertising without the expectation of increasing profit.
C) Advertising has costs but few if any benefits.
D) Advertising is critical in the long run but not the short run.

Perfect Competition

A market structure characterized by many buyers and sellers, homogeneous products, free entry and exit, and full information.

Monopolistic Competition

A market structure marked by many competing firms offering products or services that are similar, but not perfect substitutes.

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market share, leading to limited competition.