In monopolistic competition, an increase in a firm's "advertising" a) increases the firm's marginal cost. b) has no effect on demand. c) has no effect on its average cost curves. d) increases the firm's average total cost.

The correct answer is "D) increases the firm's average total cost.".

Explanation: In monopolistic competition, an increase in a firm's "advertising"  increases the firm's average total cost.

In monopolistic competition A company with a differentiated product needs to make sure that consumers know how it differs from those of competitors. Companies use advertising and packaging to achieve this goal. A large proportion of the price we pay for a good is used to cover the cost of selling it. Advertising expenses affect the company's economic profits in two ways: they increase costs and modify demand.

answer; schedule c;