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Question
multiple choice question
advertising acts as a barrier to the entry of new firms into oligopolistic industries because
o too many competing firms are advertising simultaneously
o advertising is considered an unfair practice in oligopolistic industries
o the costs of advertising are large in this situation
o government regulations restrict advertising for firms with a limited history
In oligopolistic industries, existing firms often engage in extensive advertising. New - comers face high advertising costs to compete, which is a significant barrier to entry. The large advertising costs can be a financial burden for new firms trying to enter the market.
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the costs of advertising are large in this situation