Firms under monopolistic competition

Firms under monopolistic competition and oligopoly spend huge sums of money in promotional activities. Is it justified?

Under monopolistic competition and differentiated , oligopoly, products are differentiated. Hence, additional selling costs are incurred by the firms to increase its market share, it is justified till this point. Spending huge sums is not justified as it ultimately increases the production costs of the firms and the burden will be passed on the consumers.