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5. Your company operates in a perfectly competitive market. Your Manager told you that advertising can help you increase your
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It can be mentioned that in a perfectly competitive market the price is actually fixed and the product is homogeneousand in this regard the seller and buyer have complete information about the product and therefore advertising in this case might not actually help because he cannot actually differentiate your product in terms of advertising or cannot claim the price is lower than that of the market price and instead it would increase the cost of your advertising campaign and therefore in order to make an advertising campaign I would actually choose a campaign which has the least cost such as word of mouth advertising and therefore any potential game from it would result in sales but in a perfectly competitive market as buyers and sellers know about each other, there wouldn't be any potential gain

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