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WHY WOULD FIRMS OPERATING IN A PERFECTLY COMPETITIVE MARKET BE RELUCTANT TO ADVERTISE THEIR PRODUCTs?

April 26, 2017Advertising Business engine Finance firms Marketing operating optimisation search

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WHY WOULD FIRMS OPERATING IN A PERFECTLY COMPETITIVE MARKET BE RELUCTANT TO ADVERTISE THEIR PRODUCTs?

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perfect competition means that all products are identical, as are prices; to start advertising products means to start price wars, which in a perfectly competitive market would mean undercutting prices, which would result in losses.