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multiple choice question advertising acts as a barrier to the entry of …

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

Explanation:

Brief Explanations

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.

Answer:

the costs of advertising are large in this situation