Firm A produces and sells in a market that is characterized by highly differentiated consumer goods.Firm B produces and sells industrial products.Firm C produces and sells an agricultural commodity.Which firm is likely to spend the greatest portion of its total revenue on advertising?

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Firm A operates in a market with highly differentiated consumer goods, which implies intense competition and a need to differentiate its products through advertising to attract customers. On the other hand, Firm B and Firm C produce and sell industrial and agricultural commodities, respectively, and these markets are characterized by fewer competitors and less emphasis on advertising. Therefore, it is likely that Firm A would spend the greatest portion of its total revenue on advertising.

Firm a Produces and Sells in a Market That Is