Economists' perspectives on advertising can be divided into two principal schools of thought that make different assumptions regarding the influence of advertising on the economy. Those two schools of thought are the "advertising equals market power" and "advertising equals information" perspectives. It is important that marketers understand each viewpoint as different approaches will likely lead to very different strategic advertising decisions.The belief that advertising equals market power reflects traditional economic thinking and views advertising as a way to change consumers' tastes, lower their sensitivity to price, and build brand loyalty among buyers of advertised brands. The belief that advertising equals information takes a more positive view of advertising's economic effects. This model sees advertising as providing consumers with useful information, increasing their price sensitivity (which moves them toward lower-priced products), and increasing competition in the market.Instructions: Match each characteristic to the appropriate school of thought that either "advertising equals market power" or "advertising equals information".1. Advertising makes entry possible for new brands because it can communicate product attributes to consumers. Click to select) 2. Firms can charge higher prices and are not as likely to compare on quality or price dimensions Click to select) 3. Potential entrants must overcome established brand loyalty and spend relatively more on advertising (Click to select 4. Industry prices decrease. The effect on profits due to increased competition and increased efficiency is ambiguous (Click to select) 5. Consumers can compare competitive offerings easily and competitive rivalry increases. (Click to select) 6. Firms are insulated from market competition and potential rivals. (Click to select) 7. Output is restricted compared with conditions of perfect competition. (Click to select) 8. Efficient firms remain, and as the inefficient leave, new entrants appear; the effect on concentration is ambiguous. Click to select)