Which of the following is(are) tru:?

Question

A.There is no role for advertising in perfect competition.

B.Firms in monopolistic competition and oligopoly use advertising in expectation of increasing profit.

C.Advertising has costs but few, if any, benefits.

D.A and B are true.

Answer 1

D. (both A. and B. are true.) because:

In perfect competition, products are homogeneous and advertising would serve no purpose.