Why do firms advertise? Should the government ban or restrict advertising? Firms use a wide range of advertising as a tool to ultimately increase their profits in the short, medium or long run, by either being able to sell more products or to sell products at a higher price. The aim is to shift the demand curve in a beneficial way (Figure 1). The way a firm advertises is based on many factors; the product, the …showed first 75 words of 1331 total…

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