Question 2 The objective of product differentiation and advertising in monopolistic competition is to make: O The firm allocatively efficient even if it is not productively efficient O The firm cost efficient productive plan even if it is not allocatively efficient Price less than one factor and greater than one factor product differences in consumer purchases Price plus one factor and less one factor product differences in consumer purchases Question 3 What is not a form of product differentiation for the firm in monopolistic competition? O Trademarks and Trademarks O Promotion and Packaging O Location and Accessibility Schedules and Standard Procedures Gateway
Answer 1
1. The purpose of product differentiation and advertising in
monopolistic competition consists of:
Ans is C) price less than one factor and product differences more than
a consumer buying factor.
2. That it is not a form of product differentiation for
Company in monopolistic competition?
Ans is D) Standard weekday and weekend hours.