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If a Firm in a Monopolistically Competitive Market Uses Advertising

Question 115

Multiple Choice

If a firm in a monopolistically competitive market uses advertising to lower the price elasticity of demand for its product,


A) it will likely increase its price.
B) it will likely lead to a monopoly, as other firms exit the market.
C) it will increase the level of competition in the market.
D) none of the above

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