The main objective of advertising for a monopolistically competitive firm is

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For a monopolistically competitive firm, the main objective of advertising is to differentiate its product from the competitors and increase sales. This is because the products offered by firms are not identical, and advertising helps to create a unique identity for the product in the minds of the consumers. As a result, the firm can charge a higher price than the competitors and earn profits in the long run. Additionally, advertising can also create brand loyalty and repeat customers, which is beneficial for the firm's future sales. However, reducing costs or complying with government requirements on product information may not be the primary objectives of advertising for a monopolistically competitive firm.

The Main Objective of Advertising for a Monopolistically Competitive Firm