In Monopolistic Competition, If a Firm Advertises and Effectively Raises

question 38

Multiple Choice

In monopolistic competition, if a firm advertises and effectively raises consumer awareness of its product, it tends to

• A) raise costs and increase demand for its product.
• B) raise costs and decrease demand for its product.
• C) lower costs and increase demand for its product.
• D) lower costs and decrease demand for its product.