Sue's bagel shop faces many local competitors and has recently begun an advertising campaign which
A) is likely generic advertising about the benefits of bagel consumption
B) demonstrates of her firm's monopoly status
C) differentiates her product from that of other firms
D) will shift the bagel supply curve inwards (leftward)
E) will lower bagel production costs

Question

Quizplus · Accepted Answer

Advertising campaigns in competitive markets often aim to differentiate a product from those of competitors, highlighting unique features or benefits to attract customers. This strategy does not necessarily imply a monopoly, reduce production costs directly, or shift the supply curve inwards. Generic advertising about the benefits of bagel consumption would not specifically benefit Sue's shop in a competitive market.

Sue's Bagel Shop Faces Many Local Competitors and Has Recently