If we observe a great deal of advertising of men's shaving products, we can infer that
A)the market for those products is perfectly competitive.
B)it costs firms very little to produce those products.
C)those products are highly differentiated.
D)firms are irrational in their decisions to advertise.

Question

Quizplus · Accepted Answer

If there is a great deal of advertising for men's shaving products, it suggests that firms believe there is a significant differentiation between their product and their competitors. Advertising is often used by firms to highlight the unique features or benefits of their product, in order to create a competitive advantage and generate more sales.

If We Observe a Great Deal of Advertising of Men's