Advertising by companies is most intense in which of the following types of market structure?
A)perfect competition
B)monopoly
C)imperfect competition
D)industry associations

Question

Quizplus · Accepted Answer

Imperfect competition refers to market structures where there are few dominant firms, and hence intense competition. Companies in such markets have to advertise extensively to differentiate their products and gain the attention of consumers. In contrast, in perfect competition, firms are price takers as they sell homogenous products, and advertising does not play a significant role in attracting customers. In monopolies, advertising may not be required as there is no competition to distinguish from, and industry associations are not market structures but rather groups that work for the benefit of firms in a particular industry.

Advertising by Companies Is Most Intense in Which of the Following