What is the main goal of advertising in monopolistic competition?
A. To sell cheaper products
B. To stop competition
C. To differentiate products and attract loyalty
D. To raise taxes
Answer (2)
The correct answer is C. To differentiate products and attract loyalty.In monopolistic competition, many firms sell products that are similar but not identical. Advertising is mainly used to highlight the differences in their products (like quality, features, or brand image) to make them stand out from competitors. This helps firms attract and keep loyal customers despite many similar alternatives in the market.
The correct answer is letter C. To differentiate products and attract loyalty.Businesses advertise to make their products look unique. For example, brands like Jollibee and McDonald’s spend on commercials to build a strong identity and keep customers coming back—not just because of price, but because of the emotional connection.
