Economists argue that advertising can have a negative effect on consumer choice by:
A) using market aggregation
B) reducing the opportunities for new products to be introduced
C) adding to the cost of products and discouraging competition and market entry
D) creating brand monopolies

Question

Quizplus · Accepted Answer

Advertising can add to the cost of products by increasing the marketing and promotion expenses, which in turn discourages competition and market entry. This can ultimately limit consumer choice as fewer players may be able to afford to enter the market and offer alternative products. Additionally, advertising may result in a concentration of market power among a few brands or companies, leading to brand monopolies and reduced competition.

Economists Argue That Advertising Can Have a Negative Effect on Consumer