Advertising is a ________ cost that is incurred by ________.
A) fixed; perfectly competitive firms
B) marginal; monopolistically competitive firms
C) fixed; monopolistically competitive firms
D) variable; monopolies
E) variable; perfectly competitive firms

Question

Quizplus · Accepted Answer

Advertising is considered a fixed cost because it does not vary with the level of output. It is incurred by monopolistically competitive firms, as they engage in product differentiation and need to promote their unique products to consumers.

Advertising Is a ________ Cost That Is Incurred by ________

Advertising Is a Cost That Is Incurred by