If a Firm in a Monopolistically Competitive Industry Is Profit

Multiple Choice

If a firm in a monopolistically competitive industry is profit maximizing,it should choose its level of advertising such that the marginal revenue of an additional dollar of advertising:

A) is equal to the elasticity of its demand curve minus 1.
B) is exactly $1.
C) increases revenues by $1.
D) is equal to 1 plus the elasticity of its demand curve.
E) is equal to the elasticity of its demand curve.