Does a monopolistic competitor produce too much or too little output compared to the most efficient level? What practical considerations make it difficult for policymakers to solve this problem? How might advertising reduce economic well-being? How might advertising raise economic well-being?

Mystic bottling company bottles popular beverages in the bottling department. the beverages are produced by blending concentrate with water and sugar. the concentrate is purchased from a concentrate producer. the concentrate producer sets higher prices for the more popular concentrate flavors. a simplified bottling department cost of production report separating the cost of bottling the four flavors follows: