Camille's Chicken operates in a monopolistically competitive market. If Camille implements a new free delivery service for customers,

a. this is an example of advertisingb. this is a form of nonprice competitionc. total revenue will increased. total cost will decreasee. her firm will be acting as if it were perfectly competitive market

Answer: Option B

Explanation: In simple words, monopolistic competitive market refers to the market structure in which there are many firms each offering product that are similar to each other but are not perfect substitutes. Although slight increase in price will shift the demand of costumers to other firms.

Generally, firms in such industries are not dependent on each other but still due to presence of large number for firms they compete with each other on factors other than price.

Firms in such industriousness provide extra services or offers etc to their potential or existing customers to retain or attract them. Firms in such markets have lower profit margins and are in no situation to compete on the basis of price.