- Massive Advertisement By Oligopoly And Monopolistic Firms Is Called The Practice Of Non Price Competition By Which They 1 (36.95 KiB) Viewed 52 times
Massive advertisement by Oligopoly and Monopolistic firms is called the practice of non-price competition by which they seem to cause inefficiency in production and distribution of their products. Any government attempt to legislate to limit the cost of advertisement at specific level, the firms will never welcome that possible restriction on their advertisement cost because O it will reduce the power of maintaining their barrier to entry of new firms into the market to take away their market shares O it will lower their profit it will increase their cost of sales It will incur massive loss Question 41 1 pts The existence of oligopoly and monopolistically competitive market structure is expected to create inefficient allocation of resources because OP is still higher than MC - MR rule of profit maximization All of these statements are correct answers. O Produce less output than if it would be under perfect competition Price is still higher than minimum ATC even in the LR