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Alex Ar [27]
2 years ago
10

Many firms advertise. What effect does advertising have on firm​ profits? One possible effect of advertising is to:_________

Business
1 answer:
spayn [35]2 years ago
6 0

Answer:

Option b: Increase profits by shifting the demand curve for the product to the right

Explanation:

Marketing is simply all the activities necessary for a firm to sell a product to a consumer. Firm engages in marketing to make their brand or product known.

Advertising has a whole lot of effect in the society at large. There are economic effect, social effect and others.

effects of advertising on the prices of goods and service includes exerting an upward pressure on prices that is the Cost of advertising is passed along to consumers and Advertising makes us less price sensitive) and exerting a downward pressure on prices may lead to economies of scale and Lowers the cost of sales.

Social Effects of Advertising is that it is manipulative and promotes unnecessary consumption,Advertising makes us more intelligent consumers and promotes worthwhile social causes.

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