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:

Minimum Wage

The lowest legal salary that employers can pay their workers, established by government laws.

Labor Market

A marketplace where wages are determined, and workers are hired and fired.

Consumer Surplus

The difference in the total cost consumers are prepared and financially able to cover for a good or service, against the total cost they actually cover.

Minimum Price

The lowest possible price at which a product or service can be sold, often set by government regulations to protect producers or consumers.