When a monopolistically competitive firm lowers its price, one good thing happens to the firm. What is this "one good thing" called?
A) the output effect
B) the price effect
C) the income effect
D) the substitution effect
Answer: A
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An oligopoly will always use game theory to maximize sales rather than profits.
Answer the following statement true (T) or false (F)
If tax revenues from a tax on fried foods are used to pay for healthcare expenses related to cardio-vascular diseases, the fried foods tax could be justified using the __________
Fill in the blank(s) with correct word
If the Federal Reserve accommodates an adverse supply shock,
a. inflation expectations may rise which shifts the short-run Phillips curve shifts right. b. inflation expectations may rise which shifts the short-run Phillips curve shifts left. c. inflation expectations may fall which shifts the short-run Phillips curve shifts right. d. inflation expectations may fall which shifts the short-run Phillips curve shifts left
When comparing stock indexes around the world we:
A. can examine their respective movements if we look at them as percentage changes. B. find that a given percentage change across all indexes has the same value. C. observe that they always move together. D. can see that the numeric change in indices allows investors to make easy comparisons of value.