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Which of the following is not a way that monopolistically competitive firms use​ advertising? A. inform...

Which of the following is not a way that monopolistically competitive firms use​ advertising? A. inform consumers about the features of its product B. test the market for new products C. inform consumers about prices D. distinguish its product from the products of other firms.

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Answer #1

Ans: test the market for new products.

Explanation:

In a monopolistically competitive market, a firm can differentiate it product from the competitors through the technique of advertising. Through advertising, a firm inform consumers about the features of its product, inform consumers about prices, and distinguish its product from the products of other firms.

But, test the market for new products is a demand forecasting technique used by the firms. It is not an advertising tool.

Thus, option [B] is correct answer.

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