1. Monopolistic competitors advertise so they can try to

A) increase demand.
B) intensify demand.
C) increase profits.
D) increase monopoly power.
E) all of the above answers are correct.

2. If a firm's advertising is successful inside a monopolistically competitive market, then

A) TR will increase.
B) TC will increase.
C) TR will be > than TC by a greater amount.
D) ATC will rise.
E) all of the above are correct answers.

3. Advertising in a monopolistically competitive market does what for the firm?

i) increases marginal costs.
ii) increases average total cost.
iii) increases demand.
iv) intensifies demand.
v) allows the firm to earn LR economic profit > 0.

A) i), ii), iii), iv), v)
B) i), ii), iii), and iv) only.
C) ii), iii), iv), and v) only
D) ii), iii), and iv) only
E) ii) and iii) only