Which statement about how advertising affects competition is true?
A) Advertising by large firms tends to have a limited effect on small firms.
B) Most single advertisers are large enough to dominate the entire nation.
C) Advertising is highly regulated so that it does not impede competition.
D) Intense competition tends to increase the number of businesses in an industry.
E) Non-advertised products are unable to compete with advertised, branded products.

Question

Quizplus · Accepted Answer

Advertising by large firms tends to have limited effect on small firms, as smaller firms may not have the resources or brand recognition to compete with the advertising efforts of larger firms.

Which Statement About How Advertising Affects Competition Is True