Question

pls can someone help me with this pls? review carefully

Explain how advertising influences the demand for a​ firm's product.

A.

Successful advertising increases demand for the​ firm's product and increases economic profit. New firms enter the​ market, and demand decreases for any one firm in the market.

B.

Successful advertising always increases demand for the​ firm's product in the short run and in the long run. Firms would not advertise if this was not true.

C.

Any advertising makes demand less elastic and increases the quantity demanded by consumers.

D.

Successful advertising lowers a​ firm's average total cost and increases economic profit but has no influence on demand.

Which of the following items are sold by firms in monopolistic​ competition? Explain your selections.

Tablet computersTablet computers

​______ sold by firms in monopolistic competition because​ _______.

A.

are not​; many firms produce differentiated tablet computer and entry into the market is easy

B.

are​;many firms produce differentiated tablet computers and entry into the market is easy

C.

are not​; a small number of firms compete

D.are​; a large number of firms make an identical product

BatteriesBatteries

​______ sold by firms in monopolistic competition because​ _______.

A.

are​; each firm is a price taker

B.

are​; there are not a large number of firms in the batteries market

C.

are not​; there are not a large number of firms in the batteries market

D.

are not​; each firm makes a differentiated product

Answer 1

a) Advertisement increase the average total of the firms in the market and that will make the demand for the firms goods less elastic and increase the demand for the goods in the market, the answer is "C", it may not increase the demand for the whole of the industry i.e. other firms in the industry will still be making a less profit thereby the number of firms in the industry will not increase.

b) "B"

Tablet computers are sold in the monopolistic competitive market as there are many firms in the market and easy entry that allow more firms with slightly differentiated products to enter the market.

c) "B"

Batteries are sold in the monopolistically competitive market as there are many firms in the market.