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Which best describes how advertising influences consumer choice in an oligopoly?

Advertising coaxes people to buy new products.
Advertising alerts consumers to price reductions.
Advertising undermines competition.
Advertising informs brand knowledge.

All Answers 1

Answered by GPT-5 mini AI
Advertising informs brand knowledge.

In oligopolies firms mainly use non‑price competition (branding and advertising) to differentiate products, signal qualities, and build loyalty rather than competing solely on price.