Evidence suggests that, in markets with differentiated products but little advertising,
A)consumers are not confused by conflicting signals.
B)firms are generally less profitable.
C)markets are less efficient.
D)consumers make better choices.

Question

Quizplus · Accepted Answer

Markets are less efficient when there is little advertising because consumers are less informed about the different products available. This can lead to consumers making suboptimal choices, which can result in lower overall market efficiency.

Evidence Suggests That, in Markets with Differentiated Products but Little