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firms in competitive markets on average advertise more than firms in monopolistic market and oligopoly market

firms in competitive markets on average advertise more than firms in monopolistic market and oligopoly market

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firms in competitive markets on average advertise more than firms in monopolistic market and oligopoly market

The statement is False

As the competitive firms are price takers, they cannot set their own price and instead accept the price determined by the market so they don't have any need to advertise the good as the goods produced by all the sellers are perfect substitutes whereas the monopolistic and oligopoly firms advertise as they produce differentiated goods.

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