Defenders of advertising that argue that advertising is NOT a barrier to market entry contend that:
A) large volumes of advertising are necessary to compete in many industries
B) there are economies of scale in advertising
C) advertising is only one factor amongst many that contribute to the success of a product
D) there is no relationship between intensity of advertising and market share

Question

Quizplus · Accepted Answer

Although large volumes of advertising may be necessary in some industries, and there may be economies of scale in advertising, defenders of advertising argue that advertising is only one factor amongst many that contribute to the success of a product. Therefore, advertising alone cannot be a barrier to market entry. Additionally, there is evidence to suggest that there is not always a direct relationship between the intensity of advertising and market share.

Defenders of Advertising That Argue That Advertising Is NOT a Barrier