Which of the following statements is incorrect?
A) Advertising can lower the costs to consumers of acquiring information.
B) Advertising tends to increase competition in imperfectly competitive industries.
C) Even though advertising increases total production costs, it may indeed provide a useful service to consumers.
D) Advertising is only useful as a way to manipulate consumer tastes.

Question

Quizplus · Accepted Answer

The statement that advertising is only useful as a way to manipulate consumer tastes is incorrect. Advertising can also provide information about products and services to consumers, promote competition, and create brand loyalty.

Which of the Following Statements Is Incorrect