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

question 14

Multiple Choice

In the model of monopolistic competition,an increase in industry output will ________ producers of ________ higher-priced goods and ________ producers of lower-priced goods.

• A) harm; benefit
• B) benefit; harm
• C) harm; harm
• D) benefit; benefit
• E) benefit; have no effect on

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Definitions:

Zero-Sum Game

A situation in economic theory or game theory where one participant's gain or loss is exactly balanced by the losses or gains of the other participants.

Constant-Sum Game

A situation in game theory in which the sum of the participants' gains and losses is constant, meaning what one gains, another loses.

Resistance Point

In negotiations, the least favorable point at which one will accept a deal, beyond which the party would prefer to walk away from the negotiation.

Labor Negotiations

The process by which employers and unions discuss and agree on the terms of employment, including wages, working hours, and working conditions.