If a monopolistically competitive firm lowers its price and as a result its

If a monopolistically competitive firm lowers its

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20) If a monopolistically competitive firm lowers its price and, as a result, its total revenue decreasesthen A) the output effect of the price change was less than the price effect.B) the output effect of the price change was greater than the price effect.C) the substitution effect of the price change was greater than the income effect.D) the firmʹs demand curve must have decreased.Answer: A20)Diff: 2Page Ref: 433-434/433-434Topic: Demand and Marginal RevenueLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective Thinking 21) The demand curve of a monopolistically competitive firm 21)Diff: 1Page Ref: 432/432Topic: Demand and Marginal RevenueLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective Thinking 22) Every firm that has the ability to affect the price of the good or service it sells will 22)Diff: 2Page Ref: 433-434/433-434Topic: Demand and Marginal RevenueLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective Thinking 23) Suppose a monopolistically competitive firm sells 25 units at a price of $10. Calculate its marginalrevenue per unit of output if it sells 5 more units of output when it reduced its price to $9. Diff: 2Page Ref: 433-434/433-434Topic: Demand and Marginal RevenueLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison to other market conditions AACSB: Analytic Skills 6
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