Question

Many firms advertise. what effect does advertising have on firm​ profits? one possible effect of advertising is to

Answer 1

The end result of any advertising campaign is to increase revenue and improve the profits of a company.

A good advertising campaign would mean a company will be able to make more money than it puts in. For example, spending $1 should be able to create an increase of more than $1 for the advertising campaign to work.

Advertising might fail, if a firm spends a lot of money but is not able to improve it's profits