Final answer:
Large firms use brand loyalty and increased advertising to differentiate their products, making demand curves more inelastic or shift them rightward. This helps in selling more products or at higher prices, thus increasing profits and market share. Synergistic advertising also reinforces brand recognition and acts as a barrier to new competitors.
Step-by-step explanation:
The overall effect of a large firm using brand loyalty and increasing advertising to gain profit and market share can be substantial. Through strategic advertising, a company can differentiate its products from competitors, making its perceived demand curve more inelastic or shifting it to the right. This increased advertising can lead to an ability to sell greater quantities or to charge higher prices, thereby maximizing profits. Additionally, large advertising budgets can act as a barrier to entry for competitors, since they might not be able to match the promotional spending required to effectively enter the market against well-established brands.
Furthermore, in the context of monopolistic competition, companies can leverage synergistic advertising practices, ensuring consistent messaging across various media platforms. This not only strengthens brand recognition but also fortifies consumer loyalty, which is instrumental in maintaining a competitive edge and securing market share in the long run.