Question

Role of advertisement in different market structure

Answer 1

In a competitive market, advertising is one of the many tools firms use to compete with one another. Firms compete on many different fronts, including price, features, and brand loyalty. Advertising becomes a way to convince buyers to buy one product rather than another. It attempts to reach out to consumers and offer them persuasive information or appeals. Even when products are essentially identical, brands may compete by offering consumers other reasons to buy their...