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Anton [14]
3 years ago
13

In the framework of monopolistic competition, which of the following is not a possible outcome for a firm that runs a successful

advertising campaign?
A. allocative efficiency
B. the ability of the firm to charge a higher price
C. the ability of the firm to sell a greater quantity
D. an increase in profits for the firm
Business
1 answer:
castortr0y [4]3 years ago
5 0

Answer:

The correct answer is A)

Explanation:

When products and or services are manufactured at a level that maximizes social welfare, allocative efficiency is said to have occurred.

A market system characterized as monopolistic competition may <u><em>never </em></u>achieve productive efficiency because firms often fix prices at a point higher than their marginal costs.

Marginal cost refers to the added cost incurred by producing or manufacturing one additional unit of a product.

Cheers!  

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Answer:

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