Final answer:
Advertising can help increase sales in a perfectly competitive market, but it depends on various factors. Not all businesses need the same promotional strategies.
Step-by-step explanation:
In a perfectly competitive market, all firms sell the same standardized product, which means they have little control over price and must rely on other factors to differentiate themselves. Advertising can be one of those factors that help increase sales in the short run. However, whether or not to create an aggressive advertising campaign depends on several factors, such as the cost of advertising, the potential increase in sales, and the overall marketing strategy of the company.
While advertising can help increase sales, it may not be the most effective strategy for every business. Some businesses may have other tactics, such as competitive pricing, superior product quality, or excellent customer service, that give them a competitive edge without the need for aggressive advertising. Therefore, it is not necessary for all businesses in a perfectly competitive market to have the same promotional strategies.
Ultimately, a business should carefully evaluate its own circumstances and goals before deciding whether to invest in an aggressive advertising campaign or pursue other strategies.