If a Monopolistic Competitive Firm Raises Its Price, Then

question 87

Multiple Choice

If a monopolistic competitive firm raises its price, then

• A)it should expect to lose all of its customers because there are many other sellers of the product.
• B)this is a trick question because the firm does not have the ability to change its price.
• C)it should expect to lose some, but not all, of its customers.
• D)it will be able to increase its profits.
• E)it can sell all it wants because it faces a horizontal demand curve.

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Definitions:

Generalizability

The extent to which findings from a study or research can be applied to broader contexts or with different groups.

Reliability

Degree of consistency in a measurement— that is, the extent to which it yields accurate measurements of a phenomenon across several trials, across different populations, and in different forms.

Inter-rater Reliability

The degree to which different observers or raters consistently assess the same phenomenon or outcome.

Inter-judge Reliability

The level of agreement or consistency between different judges or raters measuring the same phenomenon.