One drawback to advertising might be that it could easily
A) raise costs but not increase demand.
B) raise revenue but not increase demand.
C) decrease revenue and raise demand.
D) decrease costs and decrease demand.
E) cause a monopolistically competitive firm to become a monopoly.

Question

Quizplus · Accepted Answer

Advertising can lead to increased costs for a firm, such as the cost of designing and placing ads. However, there is no guarantee that advertising will lead to an increase in demand for the firm's product or service. If the advertising is not effective, it could simply result in higher costs for the firm without any increase in revenue.

One Drawback to Advertising Might Be That It Could Easily