If a monopolistically competitive firm lowers its price and, as a result, its total revenue decreases then
A) the output effect of the price change was less than the price effect.
B) the output effect of the price change was greater than the price effect.
C) the substitution effect of the price change was greater than the income effect.
D) the firm's demand curve must have decreased.
A
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An international financial crisis can be precipitated when
A) the rate of money supply growth is not the same in all nations. B) newly-acquired political freedom in a country leads some interest groups to form a coalition limiting competition. C) many international investors look at the behavior of a few large investors to determine when funds should be withdrawn from a particular country. D) there is an increase in portfolio investment.
What happens to a monopoly's revenue when it sells more units of its product?
What will be an ideal response?