Multiple Choice
Use the following to answer question:
Figure: Monopolistic Competitor
-(Figure: Monopolistic Competitor) Use Figure: Monopolistic Competitor.The firm shown in the figure may engage in advertising because:
A) it does not know any better.
B) its price is greater than its MC.
C) its profits are negative.
D) this will decrease its excess capacity levels.
Correct Answer:

Verified
Correct Answer:
Verified
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