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When a Monopolistically Competitive Firm Cuts Its Price to Increase

Question 7

Multiple Choice
When a monopolistically competitive firm cuts its price to increase its sales, it experiences a gain in revenue due to the A)substitution effect. B)income effect. C)price effect. D)output effect.

When a monopolistically competitive firm cuts its price to increase its sales, it experiences a gain in revenue due to the


A) substitution effect.
B) income effect.
C) price effect.
D) output effect.

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