Which of the Following Is True About Advertising

Multiple Choice

Which of the following is true about advertising?

A) If monopolistically competitive firms compete through advertising, that creates brand loyalty, then advertising can be an effective entry cost.
B) Advertising may be the only way that a new entrant can penetrate a market dominated by long-established firms.
C) Advertising has no impact on entry costs or market structure.
D) Both a. and b. above are correct.