Only firms with some market power will gain from individually advertising their product.

Question

Quizplus · Accepted Answer

Firms with market power have the ability to influence the price and quantity of their product in the market. By advertising their product, they can differentiate it from the competitors and create brand recognition. This can lead to increased demand and market share, which can allow them to charge higher prices and earn more profit. Therefore, only firms with some market power will gain from individually advertising their product.

Only Firms with Some Market Power Will Gain from Individually