When trade occurs among nations with similar tastes, technology, products, and costs, monopolistically competitive firms will have an incentive:
a. to lower prices to get new customers and increase market share.
b. to raise prices to take advantage of a lucrative situation.
c. to cut corners in manufacturing to boost profits.
d. to raise quality, so they can charge a higher price than the competition.
Ans: a. to lower prices to get new customers and increase market share.
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