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Which of the Following Statements About How Advertising Affects Competition

Question 31

Multiple Choice

Which of the following statements about how advertising affects competition is true?


A) Some observers believe that advertising actually restricts competition.
B) Advertising is not a barrier to competition.
C) Advertising is regulated so that it does not impede competition.
D) Intense advertising often encourages the entry of new brands and manufacturers into the marketplace.
E) Nonadvertised products cannot compete with advertised products.

Correct Answer:

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