Which of the following is a demerit of advertising?
Answer Details
A demerit of advertising is that it increases the per-unit cost of goods. When companies advertise their products, they incur costs related to the creation, placement, and distribution of the ads. These costs are passed on to consumers in the form of higher prices, which ultimately increases the per-unit cost of the goods being sold. This can be a disadvantage for consumers who may be willing to purchase the product but cannot afford the higher price. It can also make the product less competitive in the market compared to similar products with lower costs.