Advertising provides information to consumers about products, including prices and seller locations. Additionally, studies have shown that advertising increases competition and reduces prices compared to markets without advertising. Finally, because advertising is expensive, it signals to consumers that the product being advertised is of high quality.

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Advertising

Question 205

Multiple Choice

Advertising

A) provides information about products, including prices and seller locations.
B) has been proven to increase competition and reduce prices compared to markets without advertising.
C) signals quality to consumers, since advertising is expensive.
D) All of the above are correct.

Correct Answer: