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Essay Details:
Essay text:
First, the implications
advertising has on public accounting-- the model of perfect competition
versus the model of monopolistic compet ition. Secondly, the relationship
between firm size and advertising expenditures. Thirdly, the effect of
advertising on firm specialization, the implications of client turnover on
public accounting practice.
Before making the comparison, a brief explanation why the two
models are chosen is in order. Monopolistic competition has been chosen
for the pre-advertising era because it most closely resembles the market
structure in an extreme sense. The elements o f monopolistic competition
are as follows: product differentiation, the presence of large numbers of
sellers, and nonprice competition...
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