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Two firms produce identical goods. When they advertise their goods, consumers' price sensitivity between the goods is reduced. Thus A)competition is enhanced and product diversity

Two firms produce identical goods. When they advertise their goods, consumers' price sensitivity between the goods is reduced. Thus

A)competition is enhanced and product diversity is observed.

B)the elasticity of demand for differentiated products increases.

C)competition and social welfare are reduced.

D)the consumption of homogenous goods is encouraged.

E)competition is enhanced and product diversity is reduced.

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