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additional advertising


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t of additional advertising is lower, since it becomes less likely that a new ad reaches a consumer who has not already learned of the product's existence. As depicted, Dixit and Norman assume that the additional advertising increases price from P0 to P1 and quantity sold from D(P0, A0) to D(P1, A1). (P0, A0), balances the increase in producer surplus against the additional advertising expenditure: t that additional advertising implies. rst conclusion is now established: if additional advertising would not

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