In general, there is a _______ correlation between the degree of concentration of market power and the _______ .
A) negative; fraction of total costs devoted to advertising
B) positive; method of advertising
C) positive; fraction of total costs devoted to advertising
D) negative; costs devoted to product differentiation

Question

Quizplus · Accepted Answer

As the degree of concentration of market power increases, firms generally spend a larger fraction of their total costs on advertising to maintain or increase their market share. Therefore, there is a positive correlation between the degree of concentration of market power and the fraction of total costs devoted to advertising.

In General, There Is a _______ Correlation Between the Degree