The question is for 30 marks, please answer accordingly.

In a monopolistically competitive market, firms in the same industry/commodity try to separate themselves from other brands in what we call as product differentiation. This is done through marketing and advertisement campaigns. This clearly adds to the costs of production apart from factor inputs (FoP). This cost will also impact the price of the product. Use the idea of prisoner's dilemma from oligopoly to highlight why these burdensome costs in terms of advertisement expenditure are required.

In addition to that, search for any advertisement campaign in the last 20 years (on any medium - print, TV or social media) and try to analyze or guess the costs that must have been involved and were the firm(s) able to map it to an increased revenue or not.

- Was there a way to decrease costs? Could it have been better presented?

- In what ways such an advertisement/marketing campaign trying to alter the views and perceptions of their consumers?

- Was the target current consumer or potential consumers?

- Can you comment about the ethical implications of such a campaign, as a side note? (if applicable)

Present your analysis and recommendations.