Question: 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

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.

Figure 12.7:-

p. $ per unit P2 P B Thy 82 MR1 MR Q

p. $ per unit P2 P B Thy 82 MR1 MR Q Q MC = AC D D Q, Units per year

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