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Advertising expenditures and demand

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Consider two firms X and Y produce identically tasting cold drinks. In order to increase the demand for its cold drink, firm X increases its advertisement outlay. However the advertising doesn't increase its demand in the long run. Explain why this must be the case.

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Consider two firms X and Y produce identically tasting cold drinks. In order to increase the demand for its cold drink, firm X increases its advertisement outlay. However the advertising doesn't increase its demand in the long run. Explain why this must be the case.

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The only possible reason I can think of why advertising doesn't increase demand in the long run is because firm Y will also advertise and that would lead them back to the initial position. Under ...

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