Massive advertisement by Oligopoly and Monopolistic firms is called the practice of non-price competition by which they seem to cause inefficiency in production and distribution of their products. Any governiment attempt to legislate to limit the cost of advertisement at specific level, the firms will never welcome that possible restriction on their advertisement cost because O t will educe the power of maintalning their barrier to entry of new firms into the market to take away thelir market shares O twil lower their profit O it will increase their cost of sales O t will incur massive loss

Massive advertisement by Oligopoly and Monopolistic firms is called the practice of non-price competition by which they seem to cause inefficiency in production and distribution of their products. Any governiment attempt to legislate to limit the cost of advertisement at specific level, the firms will never welcome that possible restriction on their advertisement cost because O t will educe the power of maintalning their barrier to entry of new firms into the market to take away thelir market shares O twil lower their profit O it will increase their cost of sales O t will incur massive loss

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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