In order to differentiate their product brands from those of competing firms, monopolistically competitive firms

Question

Quizplus · Accepted Answer

Monopolistically competitive firms often use advertising as a tool to differentiate their products from those of their competitors. By creating a unique brand image or highlighting specific features of their product, firms can attract consumers who may otherwise purchase from a competitor. However, while advertising can be an effective tool for differentiation, it also adds to the firm's overall costs, which can impact profits.

In Order to Differentiate Their Product Brands from Those of Competing