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【单选题】
Consider the informative advertising, which generate a demand function for the monopolist as , where are respectively the price and advertising expenditure, presents the advertising elasticity of demand and price elasticity of demand. The marginal cost of the monopolist is c, which is constant. In this particular example, which of the following statement is true?A.
If monopolist raises the advertising expenditure A, the demand becomes more elastic to price.
B.
If monopolist raises the advertising expenditure A, the demand becomes less elastic to price.
C.
In order to make a positive profit, it should be such that so that the demand is more sensitive to price than to advertising.
D.
If the demand becomes less elastic to price, the monopolist reduces the advertising intensity
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