Question

Because monopolistically competitive firms produce differentiated products, advertising is widespread as firms try to attract new customers or to capture customers from rival firms. However, advertising can have both benefits and costs. Let's see how. 1st attempt Part 1 (3 points) ? See Hint (a) A successful advertising campaign will cause the firm's demand to (b) The firm's demand curve becomes more (c) In the short run, a successful advertising campaign will enable the firm to charge a price average costs.

Answer 1

Answer:

Letter a is correct.  A successful advertising campaign will cause the firm's demand to the right.

Explanation:

In this case, the most appropriate option is the letter a. For the added benefits of a successful advertising campaign in a monopolistically competitive company will shift the demand curve to the right. This is because a successful advertising campaign consequently retains and attracts new customers, which represents an increase in consumption of a certain good or service, and the shift of the demand curve to the right, as it will increase the target audience of the company in question.