You probably know why firms advertise. But the incentives to advertise vary from market structure to market structure. In which market structure is there a weak, but still existent, reason to advertise?
A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) there is no weak incentive-they are always strong

Question

Quizplus · Accepted Answer

In a monopoly, the incentive to advertise is weaker compared to other market structures because the firm faces no competition. However, monopolies might still advertise to increase demand or inform consumers about their product, hence the existence of a weak incentive.

You Probably Know Why Firms Advertise