When a Monopolistically Competitive Firm Lowers It Price One Bad

question 36

Multiple Choice

When a monopolistically competitive firm lowers it price one bad thing happens to the firm.What is this "one bad thing" called?

• A)the output effect
• B)the income effect
• C)the substitution effect
• D)the price effect

---

Definitions:

Migration

The movement of people, animals, or particles from one location to another, often driven by environmental factors, social changes, or economic pressures.

Meanders

Naturally occurring bends or curves in a river or waterway, typically resulting from erosion and sediment deposition.

Erode

The process by which natural forces such as water, wind, or ice wear away soil, rock, or other materials from the Earth's surface.

Sea Level

The average height of the ocean's surface between high and low tide, used as a standard in measuring land elevation and ocean depth.