Advertising can increase a firm's sales, thereby allowing the firm to gain economies of scale, and that would be good for efficiency.

Question

Quizplus · Accepted Answer

Advertising can boost a firm's sales volume, leading to higher production levels. This increase in production can enable the firm to achieve economies of scale, where the average cost of production per unit decreases as the volume of production increases, thus potentially improving efficiency.

Advertising Can Increase a Firm's Sales, Thereby Allowing the Firm