A. If a firm in a monopolistically competitive industry is profit maximizing, it should choose its level of advertising such that the marginal revenue of an additional dollar of advertising: is equal to the elasticity of its demand curve minus 1. is exactly $1. increases revenues by $1. O is equal to 1 plus the elasticity of its demand curve. is equal to the elasticity of its demand curve. A monopolist produces at a point where the price elasticity of demand is -0.7 and the marginal cost is $2. If you were hired to advise this monopolist on how to increase his profits, you would find that the way to increase his profits is to O increase his output. O lower the price. O decrease his output. O produce the output level where marginal cost equals price. increase his advertising efforts