When would advertising be LEAST effective?
A) in a perfectly competitive industry
B) in a monopolistically competitive industry
C) in an oligopolistic industry
D) in a monopoly industry
E) Advertising is equally effective in all industries.

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, there are many sellers offering homogeneous products, so advertising would not be effective in distinguishing one seller's product from another as they are identical. Consumers will make purchases based on price alone, so advertising would not be necessary.

When Would Advertising Be LEAST Effective