Final answer:
Umbro monetized PPCchat by implementing pay-per-click advertising. Businesses, in general, can increase demand for their products by advertising, altering production levels, pricing, facilities, and workforce, or diversifying their product lines. Cost changes in inputs may prompt firms to change their production technology.
Step-by-step explanation:
The question regarding how Umbro monetized PPCchat can be answered by considering various strategies businesses may use to influence market demand and profitability. The correct answer to the student's question is c. Implement pay-per-click advertising, as the acronym PPC in PPCchat stands for Pay-Per-Click. This strategy aligns with the goal of generating revenue by charging advertisers for each click on their ads.
Aside from advertising, monopolistically competitive firms can increase demand for their products by using strategies such as differential product features, improving product quality, and employing marketing and branding efforts to differentiate their offerings from competitors.
When it comes to production technology and inputs, if one input becomes relatively more expensive, firms will look for ways to substitute that input with a more cost-effective one, thereby altering their production technology or process to maintain profitability.