Asked by Bethany Cheek on May 05, 2024
Verified
Advertising provides consumers with product information and can promote competition. Thus, it is always welfare enhancing.
Welfare Enhancing
Activities, policies, or strategies that contribute to an improvement in the general well-being and quality of life of individuals or communities, often through the provision of public goods or redistribution of resources.
- Identify the contribution of advertising to market dynamics, acknowledging its positive effects and negative implications.
Verified Answer
OA
Oluwafemi AyodeleMay 06, 2024
Final Answer :
False
Explanation :
While advertising can provide consumers with product information and promote competition, it can also mislead consumers, create unnecessary wants, or lead to less competition in cases where large firms dominate advertising space, potentially reducing overall welfare.
Learning Objectives
- Identify the contribution of advertising to market dynamics, acknowledging its positive effects and negative implications.
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