Professional organizations and producer groups have an incentive to
A)restrict advertising in order to enhance competition on the basis of price.
B)restrict advertising in order to reduce competition on the basis of price.
C)encourage advertising in order to reduce competition on the basis of price.
D)encourage advertising in order to enhance competition on the basis of price.

Question

Quizplus · Accepted Answer

Restricting advertising can lead to reduced competition on the basis of price because it limits the information available to consumers about the alternatives available, making it harder for them to compare prices. This can lead to less price competition among producers.

Professional Organizations and Producer Groups Have an Incentive to