In the Model of Monopolistic Competition, an Increase in Industry

question 28

Multiple Choice

In the model of monopolistic competition, an increase in industry output will ________ market shares and ________ profits of producers of higher-priced goods and will ________ market shares and ________ profits of producers of lower-priced goods.

• A) increase; reduce; increase; reduce
• B) increase; increase; reduce; reduce
• C) reduce; increase; reduce; increase
• D) reduce; reduce; increase; increase
• E) reduce; increase; increase; reduce

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Definitions:

Multi-Product Exporter

A company that exports a variety of different products rather than specializing in a single product line.

Ethnocentric

The belief in the inherent superiority of one's own ethnic group or culture over others.

Monochronic

A cultural orientation that values doing one task at a time, emphasizing schedules, punctuality, and a linear approach to organizing time.

Geocentric

A viewpoint in international business that sees the world as a potential market with no inherent focus on any specific national market, promoting a global approach to marketing and production strategies.