Consumers benefit from advertising:
A) only when they gain information.
B) if the advertising is not persuasive.
C) because it leads to lower prices for some products.
D) when the advertising is being used as a signal.

Question

Quizplus · Accepted Answer

Advertising can lead to lower prices for some products because it creates competition among producers, which can result in price cuts. This benefit is passed on to the consumers.

Consumers Benefit from Advertising