Advertising may be an efficiency-enhancing activity when it results in the following, except when it

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Advertising can improve market efficiency by enhancing competition, facilitating new product introduction, and enabling economies of scale through increased sales. However, making buyers more brand-attached and their demand less elastic can reduce competition and market efficiency by creating barriers to entry and limiting consumers' willingness to switch to potentially better or more affordable products.

Advertising May Be an Efficiency-Enhancing Activity When It Results in the Following