Question 21
Promotion and AdvertisingUse the following information to answer questions 20 and 21.
ABC Foods has recently expanded its production capacity and is searching for a medium for advertising its products at a lower cost.
A benefit that the company would derive from advertising the product is
- A.increase in competition
- B.increase in market share
- C.decrease in production cost
- D.decrease in tax liabilities
Show the answer and explanation
Answer: B (increase in market share)
Explanation
Advertising raises sales, increasing the firm's share of the market.