Question

Possible strategies to reverse this decline in sales of a product include?

1) Decrease advertising costs
2) Add features to the product such as special or limited editions
3) Limit expansion into new markets
4) Increase prices to improve product image

Answer 1

Possible strategies to increase demand for products in monopolistically competitive firms include adding features to the product, limiting expansion into new markets, and increasing prices.

Step-by-step explanation:

In monopolistically competitive markets, firms can increase demand for their products through various strategies aside from advertising. Some possible strategies include:

1. Add features to the product: By introducing special or limited editions, firms can create a sense of exclusivity and increase demand.
2. Limit expansion into new markets: Focusing on current markets can help create a strong customer base and increase demand.
3. Increase prices: Raising prices can improve the product's image and create a perception of higher quality.

These strategies can help firms differentiate their products and attract more customers, ultimately increasing demand.