In which two market models would advertising be used most often?
A) pure competition and monopolistic competition
B) pure competition and pure monopoly
C) monopolistic competition and oligopoly
D) pure monopoly and oligopoly

Question

Quizplus · Accepted Answer

Advertising is most commonly used in monopolistic competition and oligopoly market structures. In monopolistic competition, firms differentiate their products through branding and advertising. In oligopoly, firms use advertising to build brand loyalty and gain a competitive advantage. Pure competition and pure monopoly do not typically benefit from advertising, as in the former, all firms offer the same product, and in the latter, the monopolist has no competition to advertise against.

In Which Two Market Models Would Advertising Be Used Most