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    Microeconomics Study Set 40
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    Exam 15: Monopolistic Competition and Product Differentiation
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    Advertising Is an Economically Productive Activity and Not a Waste
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Advertising Is an Economically Productive Activity and Not a Waste

Question 40

Question 40

Multiple Choice

Advertising is an economically productive activity and not a waste of resources because:


A) advertisements increase sales.
B) advertisements can convey information about the product.
C) advertisements can signal that firms are desperate for customers.
D) advertising can decrease the costs of production.

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