to lower the cost of production
to increase sales and profits
to compete successful with the rival firms
because it cannot raise the price
Answer is Wrong!
Answer is Right!
The correct answer is: C. to compete successful with the rival firms
A firm under monopolistic competition advertises to create a brand identity and differentiate itself from its rivals. This can help the firm to attract more customers and charge a higher price.
Option A is incorrect because advertising does not usually lower the cost of production. In fact, advertising can be quite expensive.
Option B is incorrect because advertising does not always lead to increased sales and profits. In some cases, advertising
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