French Lurve Taxing New Industries

[Loki]

The only companies that eat their advertising expenses are the ones that can't sell their product. Are you really that dense?

Hint: the price companies charge for a product isn't directly contingent on how much it costs to make it. Companies charge as much as they do because of supply and demand. They advertise to drive up demand, which allows them to increase prices. If two companies had the same price structure and were selling the same product, and one decided to advertise, it would not be able to raise prices at all, let alone by its advertising budget. The goal would be to drive up demand for their product, which would allow them to increase its price at some future date. If the advertising failed, then they would have spent money on advertising without being able to increase prices. I swear that your knowledge of economics is below that of the laziest students I've ever come across. You never miss an opportunity to say the most idiotic things that come to your head without bothering to verify their veracity. Do you think because something comes to your head, it automatically should be posted here? And do you think that just because something comes to your head, it must be true? The quote "the less you know, the more you think you know" must have been created with you in mind.