In Monopolistic Competition, If a Firm Advertises and Effectively Raises

question 172

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.