Which of the following statements is true about advertising by a monopolistically competitive firm?
A) Since the monopolistic competitor, like the perfect competitor, makes zero profit in the long run, it is a waste of resources to advertise its products.
B) Advertising could make the monopolistic competitor's demand more inelastic, but advertising has no effect on a perfect competitor's demand.
C) Monopolistically competitive firms tend to shun advertising because advertising draws attention to the variety of differentiated products available in the industry.
D) Advertising will be more beneficial if a monopolistic competitor colludes with other firms to advertise the products of the industry as a whole rather than an individual firm's product.
B
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a. True b. False Indicate whether the statement is true or false
Because majority voting fails to incorporate the strength of the preferences of individual voters, it:
A. creates negative externalities. B. under some circumstances produces economically inefficient outcomes. C. leads to market failure. D. leads to politics dominated by special interest groups.