Although advertising raises the price of a monopolistic competitor's product, it does confer a benefit to consumers.Which of the following is a benefit to consumers?
A)Advertising acts as a barrier to entry.
B)Advertising engenders brand loyalty.
C)Advertising could provide consumers with useful information about new products and enable them to comparison shop.
D)Advertised products tend to be of higher quality so consumers feel special when they consume advertised products.

Question

Quizplus · Accepted Answer

Advertising can inform consumers about new products or features and help them compare prices and quality, leading to more informed purchasing decisions. This can ultimately benefit consumers by enabling them to make better choices and obtain products that better meet their needs. Options A, B, and D do not directly benefit consumers but may instead benefit the monopolistic competitor by increasing brand recognition or creating barriers to entry for competitors.

Although Advertising Raises the Price of a Monopolistic Competitor's Product