Question

Which of the following is a criticism (objection) against advertising related to pricing?

Options

• Advertising shifts all costs directly to the government

• Advertising increases product cost, leading to higher prices

• Advertising lowers product cost and hence lowers prices

• Advertising has no impact whatsoever on product prices

Answer 1

One major criticism of advertising is that it adds to cost. Critics argue that the expenditure on advertising increases the overall cost of the product, which in turn leads to higher prices for consumers.