Question

While advocates of a market-oriented economy tend to argue that consumers benefit substantially when firms seek short-term profits by providing differentiated products, critics of market-oriented economies may argue that product differentiation (along with marketing and advertising) is _______________.

Answer 1

Answer:

Socially wasteful.

Explanation:

Followers of the market-oriented economy believe in the divergence of products and to earn short-term profits. They consider advertisements and promotions to attract customers to earn quick profits in short-run. Likewise, critics of market-oriented economy believe that creating or producing a wide variety of different goods and marketing those products is socially wasteful and unnecessary.  They argue that it will increase the overall revenue of the firm.