Two inescapable characteristics of the monopoly firm's decision problem are imperfect information and the interdependence of its price, advertising and output choices. In the large modern corporation imperfect information concerning the final product that will materialize within the firm's planning period is perhaps the most common source of or risk. Previous work in the theory of the firm under risk has demonstrated two avenues by which stochastic may influence the firm's pricing and advertising decisions. Edwin Mills [21; 22] argued that if both price and output must be chosen before random is known, then firms will attempt to avoid incurring surplus production costs or foregoing potential sales by setting ex ante prices and outputs that depend upon capacity costs, the costs of carrying inventory, the price-cost differential for the marginal sale and the moments of the probability distribution of demand [22, 88]. Mills demonstrated that with constant marginal cost and a distribution independent of the price level, even the expected-profit-maximizing (EPM) firm would respond to risk by lowering ex ante price as variance increased. Nevertheless, without capacity constraints or production lags (i.e., with output set ex post), Mills concluded uncertainty plays no essential role in the [EPM] decision process [22, 85]. Later research into alternative objectives that might motivate managerial decisions has shown that even a firm that can with ex post output clear its market at a previously quoted price will alter its pricing behavior as the variance of stochastic increases. Indeed precisely Mills's result that ex ante price falls with increased risk has emerged from ex post output models in which risk-averse managers maximize the expected utility of stochastic profits [15; 16, 378-400; 18; 20]. Similar results have been derived for advertising as well as price in a two-variable model of such managerial-utility-maximizing (MUM) choices [16; 9; 7; 26]. Yet all these MUM models have focused too little attention on the representative in-