Regarding our macro-marketing system:
A) consumers would be better off if our macro-marketing system were in pure competition-rather than monopolistic competition.
B) marketing makes people buy things they don't need.
C) advertising can actually lower final consumer prices-if it helps achieve economies of scale.
D) monopolistic competition leads to higher prices, restriction of output, a waste of resources, and greater consumer dissatisfaction.
E) All of these alternatives are correct.

Question

Quizplus · Accepted Answer

Advertising can increase demand for the product, resulting in economies of scale in manufacturing, distribution, and sales - all of which can offset advertising costs, leading to lower prices to the consumer.

Regarding Our Macro-Marketing System