QUESTION 6 Your company operates in a perfectly competitive market. You have been told that advertising can help you increase your sales in the short run Would you create an aggressive advertising campaign for your product? O B. No, because your product is identical to every other product in the market, O C. Yes, because your product is better than any other product in the market, D. Yes, because your product can be differentiated from every other product in the market, QUESTION 7 If a perfectly competitive firm can sell as much as it wishes at the market price, can the firm not simply increase its profits by selling an extremely high quantity? O B. No, because rising marginal and average costs and diseconomies of scale eventually make expanding production unprofitable. O C. No, because rising sales means costs rise even faster, O D. Yes, because marginal and average costs make expanding production even more profitable