In the Model of Monopolistic Competition,an Increase in Industry Output

question 56

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

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Definitions:

Income Inequality

The unequal distribution of income within a population, often measured by various statistical means like the Gini coefficient.

Earnings Received From Wealth

Income generated from assets owned, such as dividends from stocks, interest on bonds, or rent from property.

Reduction In Income Inequality

Refers to efforts or policies aimed at decreasing the disparity in income distribution among a population, thereby promoting economic fairness.

Transfer Payments

Payments made by the government to individuals or other entities without receiving any goods or services in return, such as welfare benefits or social security.