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Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as the marginal A. benefit of advertising is positive B. cost of
advertising is positive C. benefit of advertising exceeds the marginal cost of advertising D. cost of advertising exceeds the marginal benefit of advertising
The answer is C. benefit of advertising exceeds the marginal cost of advertising.
Expert answered|jeifunk|Points 5312|
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Asked 8/22/2012 12:39:19 PM
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Other things being equal, when average productivity falls, A. average fixed cost must rise B. marginal cost must rise C. average total cost must rise D. average variable cost must rise
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Asked 8/22/2012 11:53:11 AM
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