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 and promotion can help achieve economies of scale, which can lead to lower costs and thus lower final consumer prices. This is particularly true in industries where fixed costs are high, such as the automotive or electronics industries. The other choices are either incorrect or incomplete. Pure competition is not necessarily better than monopolistic competition, as it lacks the innovation and product differentiation that can come with the latter. Marketing does not necessarily make people buy things they don't need, but it can help them make informed choices and find products that meet their needs. Monopolistic competition does not always lead to higher prices and consumer dissatisfaction, but it can if firms abuse their market power.

Regarding Our MACRO-Marketing System