If a Firm That Is Operating in a Monopolistic Competitive

question 100

Multiple Choice

If a firm that is operating in a monopolistic competitive market wishes to sell more units, it must:

• A) lower its price.
• B) raise its price.
• C) lower its costs.
• D) raise its costs.

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Definitions:

Commerce Clause

A provision in the U.S. Constitution that grants Congress the power to regulate commerce with foreign nations, and among the several states and with the Indian tribes.

Interstate Commerce

The buying, selling, or moving of products, services, or money across state lines, subject to federal regulation.

State Laws

Laws that are enacted and enforced by individual states, as opposed to federal laws that apply to all states in the country.

Police Power

The states’ power to regulate to promote the public health, safety, morals, and welfare.