When advertising encourages customers to become more informed about all firms in the market,what is the result

Question

Quizplus · Accepted Answer

When customers become more informed about all firms in the market, it reduces the asymmetry of information and puts all firms on a level playing field. This reduces the ability of individual firms to control the price of their products and gives more power to the customer in terms of making informed choices. Therefore, each firm is likely to have less control over the price of its product.

When Advertising Encourages Customers to Become More Informed About All