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19. If a firm in monopolistic competition lowers its price, what will happen to the quantity of products it sells? A. The quantity of products sold will increase and sales revenue will decrease. B. The quantity of products sold will decrease because this is not perfect competition. C. The quantity of products sold will increase slightly-and in some cases not at all. D. The quantity of products sold will not change and sales revenues will decrease. E. The quantity of products sold will increase and sales revenue will increase.

19. If a firm in monopolistic competition lowers its price, what will happen to the quantity of products it sells? A. The quantity of products sold will increase and sales revenue will decrease. B. The quantity of products sold will decrease because this is not perfect competition. C. The quantity of products sold will increase slightly-and in some cases not at all. D. The quantity of products sold will not change and sales revenues will decrease. E. The quantity of products sold will increase and sales revenue will increase.

Principles of Economics, 7th Edition (MindTap Course List)
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Monopolistic Competition
Section: Chapter Questions
Problem 1QCMC
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19. If a firm in monopolistic competition lowers its price, what will happen to the quantity of products it sells? A. The quantity of products sold will increase and sales revenue will decrease. B. The quantity of products sold will decrease because this is not perfect competition. C. The quantity of products sold will increase slightly-and in some cases not at all. D. The quantity of products sold will not change and sales revenues will decrease. E. The quantity of products sold will increase and sales revenue will increase.
Transcribed Image Text:19. If a firm in monopolistic competition lowers its price, what will happen to the quantity of products it sells? A. The quantity of products sold will increase and sales revenue will decrease. B. The quantity of products sold will decrease because this is not perfect competition. C. The quantity of products sold will increase slightly-and in some cases not at all. D. The quantity of products sold will not change and sales revenues will decrease. E. The quantity of products sold will increase and sales revenue will increase.
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