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Why Might a Purely Competitive Industry Advertise,even If Individual Firms

Question 146

Multiple Choice

Why might a purely competitive industry advertise,even if individual firms do not?


A) The industry can selectively promote firms and force some out of business.
B) An industry can advertise to promote its products without shifting the average total cost curve for individual firms.
C) The industry hopes to boost overall demand for the substitute goods.
D) An industry cannot advertise because it is not an actual business.
E) An industry would never advertise in a purely competitive market.

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