Q
Which of the following is not put forth as a criticism of advertising and brand names ?
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A
A. Advertising manipulates people’s tastes to create a desire that otherwise would not exist
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B
B. Advertising increase competition which causes unnecessary bankruptcies and layoffs.
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C
C. Advertising increases brand loyalty causes demand to be more inelastic and thus, increase mark-up over marginal cost.
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D
All of these answers are criticisms of advertising and brand names
Correct Answer:
B. B. Advertising increase competition which causes unnecessary bankruptcies and layoffs.
