Question

Aside from advertising, how can monopolistically competitive firms increase demand for their products?

Short answer

Yes, monopolistically competitive firms increase demand for their product from various other methods besides advertising, like, product differentiation.

Step-by-step solution

Step 1.To determine

Apart from advertising, how can a dominant corporation increase demand for its product?

Step 2. Expalanation

Product differentiation allows a monopolistic corporation to increase demand for its product. In a monopolistic competition, each firm sells a unique product. The company has the ability to differentiate their product from that of their competitors. The company sells a variety of goods that varies in shape, quality, colour, and application. The corporation can attract buyers for their product by adopting the product differentiation strategy.