Advertising by firms in monopolistic competition A) provides ...

[newyorker26]

Advertising by firms in monopolistic competition
 
  A) provides consumers with no useful information.
  B) does not occur.
  C) can persuade customers that product differentiation exists.
  D) wastes resources because the entry of rivals forces firms to be price takers.

Question 2

For a common resource, the marginal private cost curve slopes ________ and the marginal social cost curve slopes ________.
 
  A) upward; upward
  B) upward; downward
  C) downward; upward
  D) downward; downward

[joshraies]

Answer to Question 1

C

Answer to Question 2

A