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Chapter 25: 25.3- Learning Objectives (page 559)

Explain why brand names and advertising are important features of monopolistically competitive industries.

Short Answer

Expert verified

Ad placement and product identities are significant characteristics of monopolistic competitive market industries. As both of these approaches get the potential to boost product demand.

Step by step solution

01

Introduction.

A pure monopoly is the opposite of a perfectly competitive, wherein the number of firms has been infinite.

The dominant firm can restrict output, raise the prices, as well as appreciate amazingly profits over time inside a solely monopolization model.

02

Given Information.

Trade marks and marketing are crucial elements of monopolistic competitive market enterprises.

03

Reason for brand names and advertising are important features of monopolistically competitive industries. 

Infomercial and manufacturer names are crucial elements of industries those are currently prevalent. Because many of these techniques have the potential to increase product sales.

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