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Firms in monopolistic competition spend a lot on advertising because it

A. effectively decreases the demand curve.
B. will allow them to lower the price and increase revenue.
C. is a good way to differentiate their products to consumers,
D. makes the demand for their products more elastic.

1 Answer

4 votes
C. It is a good way to differentiate their products to consumers.
User AlfredBaudisch
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