Sort the following situations as to whether or not advertising would be economic

Question

Sort the following situations as to whether or not advertising would be economically efficient or inefficient Fish-Fil-A, a fast food fish-stick chain, uses flounders to advertise their slogan "Eat Mor Feesh" to promote their various fish products. Inefficient Efficient An advertisement in the Yellow Pages states that Bride and Co. have been in the bridal consulting business for over 40 years An advertisement is run on the benefits of drinking coffee to reduce the risk of prostate cancer. Tillamook runs an ad in Vermont claiming it makes the best cheddar cheese in the United States. An ad run on Craigslist states that a mattress is in good condition, lightly used, with minimal staining. Which of the following is true regarding advertisements? O Perfeily competitive fims have the most incenlive to adventse to increase their consumer base. Perfectly competitive firms have the most incentive to advertise to increase their consumer base. Advertising is only effective if the firm has some degree of market power. Advertising causes consumers to focus solely on one product in question, eliminating alternatives O to the rational customer. O All of the above are true regarding advertisements.

Explanation / Answer

Advertising is only effective if firm has some degree of market power

Inefficient Efficient Fish-Fil-A Bride and Co. Drinking coffee Craigslist Tillamook

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.