Question

"Monopolistic competitors advertise to differentiate their products. Advertising can serve at least two useful functions: it can impart information, and it can signal product quality. Match the examples to the likely purpose of advertising in each case."

Answer 1

Home Depot advertises a Black Friday sale in a weekly circular. - A

A Cadillac commercial shows a famous athlete driving a Cadillac. - B

A BMW billboard introduces the new 3 series and highlights its great gas mileage. - A

At the opening of a new dealership, Mercedes distributes an extravagant brochure. - B

Step-by-step explanation:

Here, Home Depot and BMW are trying to inform consumers about something. Whereas, Cadillac and Mercedes are trying to emphasize on quality.