Question

Which of the following is not put forth as a criticism of advertising and brand names?

a. advertising manipulates people's tastes to create a desire that otherwise would not exist
b. advertising increases competition, which causes unnecessary bankruptcies and layoffs
c. advertising brand loyalty, causes demand to be more inelastic, and thus, increases markup marginal cost
d. brand names cause consumers to perceive differences that do not exist between goods
e. all the above are criticisms of advertising and brand names

Answer 1

The provided criticism not commonly associated with advertising and brand names is that it increases competition, causing bankruptcies and layoffs. Other options are valid concerns linked to advertising.

Step-by-step explanation:

The criticism of advertising and brand names that is not mentioned in the list provided is option b, which states that advertising increases competition leading to unnecessary bankruptcies and layoffs. This is not a common criticism; in fact, advertising is often seen as a tool that fosters competition rather than diminishing it. The other options are indeed recognized criticisms of advertising and brand names. Option a criticizes advertising for manipulating consumer preferences, option c argues it increases consumer insensitivity to price changes by fostering brand loyalty, and option d suggests advertising leads consumers to perceive differences where none exist.