Question: 7.1 Using a graph similar to Figure 12.7, explain why a firm might not want to spend A on advertising, even though it shifts the

7.1 Using a graph similar to Figure 12.7, explain why a firm might not want to spend A on advertising, even though it shifts the firm’s demand curve to the right. (Hint: Discuss what happens to the elasticity of demand or the price at the monopoly optimum.)

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