firms offer very little service differentiation, the absence of
             advertising serves as a replacement because clients are not necessarily
             aware that other options are easily attainable. The post-advertising era
             is explained through the model of perfect competition for which the
             qualifications are as follows: very little or no service differentation,
             many sellers, and price as the only means of distinguishing one firms
             service from anothers. In a perfectly competitive market the price of a
             particular service is established solely by the interaction of market
             demand and supply. (Thompson p.277) When market demand for accounting
             services increases the resulting demand shifts right causing prices to
             increase returning the market back to equilibrium. However when supply
             increases, such is the theoretical effect of adding advertisement to
             public accounting practice, the supply curve shifts right causing prices
             The model of monopolistic competition is also price sensitive,
             however only at the firm level. For example, the CPA firm of XYZ has an
             established clientele base and uses referrals as its sole means of growth.
             They increase prices only as their cost of providing the service increases
             and therefore are able to maintain their client base. In this example a
             gently downsloping demand curve exists (Thompson p.304) causing only
             drastic changes in pricing to send their client base shopping for a new
             firm. The result is XYZ can continue to grow by practicing fair pricing
             and prov...