The overall effect of advertising on economic efficiency is ○ positive, since it tends to lead to increased sales. O indeterminate, since it leads to increased excess capacity but may also guide consumers to better decisions. negative, since it utilizes resources that could otherwise be used to expand production. Advertising is not important for efficiency.

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter17: Advertising And Public Relations
Section17.2: The Rise Of Native Advertising
Problem 1C
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The overall effect of advertising on economic
efficiency is
positive, since it tends to lead to increased sales.
indeterminate, since it leads to increased excess
capacity but may also guide consumers to better
decisions.
O negative, since it utilizes resources that could
otherwise be used to expand production.
Advertising is not important for efficiency.
Transcribed Image Text:The overall effect of advertising on economic efficiency is positive, since it tends to lead to increased sales. indeterminate, since it leads to increased excess capacity but may also guide consumers to better decisions. O negative, since it utilizes resources that could otherwise be used to expand production. Advertising is not important for efficiency.
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