advertisements is a question of the life and death under monopolist competition example the statement by giving valid answering supporting the statement
Answers
Monopolistic competition is the competition with a huge number of buyers and sellers in the market of a particular product. So one of the greatest ways with which one seller differentiates himself from the other is through the way of advertising.
The way the commodity is advertised in front of the consumers makes them attracted to a particular supplier and increase his supply.
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Q1) Meaning of monopolistic competition.
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Q2) Assumptions of monopolistic competition.
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Answer:
Advertising and Monopolistic Competition
Explanation:
Monopolistically competitive and oligopolistic firms use advertising so much because it allows them to avoid price competition, which will eventually eliminate their economic profits. Instead, they attempt to develop brand loyalty and differentiate their products in nonprice ways.
Produces a higher price and a lower level of output than a competitive market does. By lowering price and lowering inefficiency in monopolistic competitive market it would limit product variety in the market. Advertising. Drive additional demand for the product being sold.