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WAEC Commerce 1998 Question 42

Question 42

Advertising

Which of the following is a demerit of advertising?

  1. A.Increases per-unit cost of goods
  2. B.Leads to increased profit for producers
  3. C.Provides information for customers
  4. D.Reduces per-unit cost of goods
  5. E.increases competition among producers
Show the answer and explanation

Answer: A (Increases per-unit cost of goods)

Explanation

The cost of advertising is added to the price of goods.