28
QuizMultiple Choice

N/A — Exam

Question 28 • Economics

Which best describes how advertising influences consumer choice in an oligopoly?

Answer
A
Advertising informs brand knowledge.
B
Advertising undermines competition.
C
Advertising alerts consumers to price reductions.
D
Advertising coaxes people to buy new products.

Explanation

In an oligopoly, a few large firms compete, often by differentiating their brands. Advertising helps consumers learn about the brands and what distinguishes them, influencing which one they choose. It can also promote sales or announce discounts, but informing consumers about brands is the best overall description here.

AI-written and checked against the verified answer.

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