With Increasing Returns (Falling Average Costs), International Trade Will Cause

question 6

Multiple Choice

With increasing returns (falling average costs) , international trade will cause the demand curves of monopolistically competitive firms to become _______________ because of foreign competition and firms must _______________to meet foreign competition.

• A) steeper; raise prices
• B) flatter; lower prices
• C) flatter; raise prices
• D) steeper; lower prices

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Definitions:

Marketing Research

Marketing Research involves gathering, analyzing, and interpreting information to aid in making informed marketing decisions.

Bookkeeping Service

Involves the recording of financial transactions and is part of the process of accounting in business, ensuring accurate financial records are kept.

Marketing Research Process

An organized series of steps taken to gather and analyze information to help in marketing decision-making.

Secondary Data

Information that has been previously collected and published by others, used for research or analysis.