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

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

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter3: Your Role As A Consumer

Section: Chapter Questions

Problem 9AA

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