Those who are critical of advertising argue that it:
A)tends to make markets behave more like perfectly competitive markets.
B)leads to a shortage of high-cost,high-quality goods.
C)results in higher prices to consumers.
D)encourages competition through price comparison.

Question

Quizplus · Accepted Answer

Critics argue that advertising results in higher prices for consumers, as companies incur the cost of advertising and pass it on to the consumer in the form of higher prices. This is because advertising is essentially a form of product differentiation, allowing companies to charge higher prices for their unique or perceived superior products.

Those Who Are Critical of Advertising Argue That It