If each of two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, the total result is
A) they will both increase market share.
B) they will simply neutralize one another's efforts.
C) they will both lose market share.
D) they will both improve their industrial position.

Question

Quizplus · Accepted Answer

When two competing monopolists undertake equal advertising efforts to attract consumers away from each other, their efforts tend to cancel out, leading to a neutralization of each other's efforts without a significant change in their market shares.

If Each of Two Competing Monopolists Undertakes Equal Advertising Efforts