Which best describes how advertising influences consumer choice in an oligopoly?

a) Advertising coaxes people to buy new products.

b) Advertising alerts consumers to price reductions.

c) Advertising undermines competition.

d) Advertising informs brand knowledge.

Answer:- b) Advertising alerts consumers to price reductions.

The oligopolists can surge their marketplace share through advertising, and they contest founded on advertising rather than on pricing. Excessive publicity by the Oligopolist is implemented as a barrier in contradiction of the entry of other firms. This is likewise used to inform consumers of new products in the market. The choice that finest defines how advertising influences consumer choice in an oligopoly is “Advertising informs brand knowledge.”