Question 1) a) Which of the following is a common criticism of advertising? O. It makes market entry easy. O. It createsa demonstration effect. O. It stirs competition among firms. O. It promotes freedom of expression.

ENGR.ECONOMIC ANALYSIS
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Question 1)
a) Which of the following is a common criticism of advertising?
O. It makes market entry easy.
O. It createsa demonstration effect.
O. It stirs competition among firms.
O. It promotes freedom of expression.

b) Why do perfectly competitive firms avoid using advertising?
O. They can sell all they want at the market price without ads.
O. They usually don't have enough revenue to advertise.
O. They are afraid the ads will lower the price of their products.
O. They usually have a limited distribution network, making advertising unnecessary.

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