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Economics glossary · Firms and competition

Advertising

What advertising means in economics, as one of forms of non-price competition, with an example and a question to test yourself.

Definition
Advertising
Advertising tells or persuades buyers that a firm's product differs from its rivals', to raise demand for it or make that demand less price elastic.
Example

Can you think of an example of advertising?

Test yourself

Can you name the four forms of non-price competition?

Learn it properly: the module

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