Larger companies often end up charging higher prices and achieve a more dominant position in the market than smaller firms that cannot compete against them and their large advertising budgets.When this occurs,advertising:

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When larger companies have a dominant position in the market, advertising can become a substitute for competition based on price. This means that instead of competing on the basis of providing lower prices, companies focus on advertising to attract customers. This can be harmful to consumers as they may end up paying higher prices than they would in a more competitive market. Therefore, governments may need to regulate or restrict advertising in such situations to protect consumers.

Larger Companies Often End Up Charging Higher Prices and Achieve