Which of the following is an outcome of advertising for a monopolistically competitive firm?
A) Long-run average costs shift downward.
B) The firm's demand curve becomes flatter and shifts inward.
C) The firm's demand curve keeps the same slope and shifts inward.
D) Long-run average costs shift upward.

Question

Which of the following is an outcome of advertising for a monopolistically competitive firm? ​
A) ​Long-run average costs shift downward.
B) ​The firm's demand curve becomes flatter and shifts inward.
C) ​The firm's demand curve keeps the same slope and shifts inward.
D) ​ Long-run average costs shift upward.

Quizplus · Accepted Answer

Advertising increases costs for a monopolistically competitive firm, leading to an upward shift in long-run average costs.

Which of the Following Is an Outcome of Advertising for a Monopolistically