In monopolistic competition, if a firm advertises and effectively raises consumer awareness of its product, it tends to

The question is imcomplete, the options are missing. The options are the following:

a) Lower costs and increase demand for its product.

b) Raise costs and increase demand for its product.

c) Raise costs and decrease demand for its product.

d) Lower costs and decrease demand for its product.

And the correct answer is the option B: Raise costs and increase demand for its product.

Explanation:

To begin with, in the case where a monopolistically competitive firm effectively uses and advertise to increase the awareness of its target audience regarding its main product then that company will obviously tend to raise the costs due to the adverstising campaign but will also increase the demand for its product because of the correct awareness that the company and the advertising generated in the main consumers of the organization and that is why that the business will have and advantage in comparison with the other competitors in the market.

the interest will be $59.71

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