In Imperfectly Competitive Markets, Increasing Production Will Decrease the Price

question 491

Multiple Choice

In imperfectly competitive markets, increasing production will decrease the price of all units sold. This concept is known as the

• A)income effect.
• B)cost effect.
• C)output effect.
• D)price effect.

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Definitions:

Trade Discounts

Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers.

Operating Expenses

Costs associated with a company's main operational activities, excluding the cost of goods sold.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the financial performance over a specific period.

Service Businesses

Businesses that primarily offer intangible products or services to consumers or other businesses.