The Main Objective of Advertising for a Monopolistically Competitive Firm

question 245

Multiple Choice

The main objective of advertising for a monopolistically competitive firm is

• A) to differentiate the product and boost demand.
• B) to reduce cost.
• C) to earn long run profits.
• D) none of the above.

---

Definitions:

Potential Profitability

The capacity of a business venture or investment to generate earnings and achieve financial success.

Under-served Markets

Markets or segments that have insufficient access to products, services, or resources, often due to economic or geographic reasons.

Choosing a Segment

involves selecting a specific part of the market to focus on, based on certain criteria like demographics or behavior.

User Persona

A semi-fictional character created by businesses to represent the different user types that might use a service, product, site, or brand in a similar way.