The restrictions that governments place on the advertising of tobacco products:
A)Reduce the demand for tobacco thereby depressing profitability
B)Reduce the marketing costs of tobacco companies and impede the entry of newcomers to the market,boosting the profitability
C)Cause both (a)and (b)
D)Cause neither (a)nor (b)

Question

Quizplus · Accepted Answer

The restrictions on tobacco advertising can both reduce the demand for tobacco products, affecting profitability negatively, and reduce marketing costs while also making it harder for new competitors to enter the market, potentially boosting profitability for existing companies.

The Restrictions That Governments Place on the Advertising of Tobacco