There are only two views of advertising: informative and persuasive.

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter14: Transaction Costs, Asymmetric Information, And Behavioral Economics
Section: Chapter Questions
Problem 1.1P
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9. (
) There are only two views of advertising: informative and persuasive.
10. (
willingness to pay for their product or that changes the distribution of consumer tastes in their favour.
) Persuasive advertising is a wasteful mechanism that a firm can use in order to increase the
Transcribed Image Text:9. ( ) There are only two views of advertising: informative and persuasive. 10. ( willingness to pay for their product or that changes the distribution of consumer tastes in their favour. ) Persuasive advertising is a wasteful mechanism that a firm can use in order to increase the
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