Question

Which of the following is a reason advertising can be economically wasteful? Advertising provides consumers with price and quality information about products. The most effective advertising is very expensive and, therefore, wasteful. Advertising manipulates people's tastes and can reduce competition.

Answer 1

Answer:

The correct answer is advertising manipulates the tastes of people and can reduce or decrease the competition.

Explanation:

Advertising is the source through which the company or the firm promote the product or a service of their business, so that the customers could be make aware of the products and the services offered by the firms.

It manipulates the taste of the people by establishing a desire and impedes the competition through increasing the perception of the product differentiation.