The Fed was founded in 1913 to serve as lender of last resort to bankers during bank runs and panics

If a firm in monopolistic competition lowers its price, what will happen to the quantity of products it sells?

a. The quantity of products sold will increase and sales revenue will fall. b. The quantity of products sold will decrease because this is not perfect competition. c. The quantity of products sold will increase slightly—and in some cases not at all. d. The quantity of products sold and sales revenues will increase as the firm lures customers from its competitors and attracts new customers.

Dumping occurs when a foreign firm ________

A) pollutes international waters B) disposes of waste materials in other countries C) sells inferior output to foreigners D) sells its exports at a lower price than its cost of production