Final answer:
Advertising explains major features, benefits, location, and new offerings of a product, influencing sales and profits by differentiating it in the market.
Step-by-step explanation:
The component responsible for explaining the major features and benefits, location, sales, and new offerings of a product is A. Advertising. Advertising plays a critical role in communicating the distinctive aspects of a product's physical attributes like an unbreakable bottle or nonstick surface, among others. Moreover, it highlights how the location of a business, such as a gas station at a busy intersection or a supplier near a car factory, can significantly impact sales and customer convenience.
In the context of monopolistic competition, advertising can make a firm's perceived demand curve more inelastic or increase the demand for the firm's product. An effective advertising campaign can enable a firm to either sell more products or charge higher prices, ultimately boosting profits.