From an economic perspective, advertising might lower the cost of a product by:

Question

Quizplus · Accepted Answer

Advertising can increase the demand for a product which can lead to an increase in sales volume. This will enable firms to benefit from economies of scale, as they will be producing at a larger scale which in turn will lead to a reduction in production costs. This reduction in production costs can then result in a lower cost of the product for the consumer.

From an Economic Perspective, Advertising Might Lower the Cost of a Product