Successful product development, advertising, and the creation of brand names are most likely to have a positive impact on the economic profits of the producer under:
Product development, advertising, and the creation of brand names are most likely to have a positive impact on the economic profits of the producer under monopolistic competition. Under perfect competition, all producers (and all consumers) are price takers and economic profits do not exist. Under monopoly, product development, advertising, and the creation of brand names are of little consequence in determining economic profits.