Which of the following is not an argument put forth by economists in support of the use of advertising ?
Correct answer: C. Advertising provides a creative outlet for artists and writers
- A. Advertising increases competition
- B. Advertising provides information to customers about prices, new products and location of retail outlets.
- C. Advertising provides a creative outlet for artists and writers
- D. Advertising provides new firms with the means to attract customers from existing firms.
Explanation
Economists defend advertising for its market effects, such as informing consumers, increasing competition, and helping new firms attract buyers. Providing artists and writers with a creative outlet is not an economic efficiency argument for advertising.
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