In monopolistic competition, if a firm lowers its price, the rival firms will:

A. Also lower their prices

B. Increase their prices

C. Show no reaction

D. None of the above

Please do not use chat terms. Example: avoid using "grt" instead of "great".

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  1. The monopolist firm is price setter. The price setter firm is one which:
  2. In finding equilibrium position of a profitmaximizing firm, which technique is most convenient?
  3. The demand of the luxuries is:
  4. Selling costs are incurred under monopolistic competition to:
  5. In the long run average costs curve, a firm can change:
  6. In context of oligopoly, the kinky demand curve (kinked demand curve) hypothesis is designed to explain:
  7. The elasticity of substitution measures the percentage change in the ratio of inputs when any producer…
  8. Microeconomics deals with the:
  9. Identify the author of The Social Framework:
  10. According to critics, the assumption of costless production is:
  11. A firm considering what type of new plant to build is involved in a:
  12. According to Chamberlin, the activity of a monopolistic competitive firm:
  13. A good tends to have relatively inelastic demand, if:
  14. According to Marginalists, the price of any commodity is determined by:
  15. Engel curves shows that:
  16. According to Diamond Water Paradox diamonds are more expensive than water because:
  17. The horizontal demand curve for a commodity shows that its demand is:
  18. In short run, a firm can change its:
  19. Airlines that try to lower fares in order to increase revenues believe that demand for airline services…
  20. If demand is elastic and supply is inelastic then the burden of a tax on the good will be:
  21. In cournot model, firms face:
  22. Income -elasticity of demand will be zero when a given change in income brings about:
  23. Total costs in the short-term (short-run) are classified into fixed costs and variable costs. Which…
  24. Identify the work of Irving Fisher:
  25. A country is advised to devalue (reduce external value of) its currency only when its exports face:
  26. The least cost combination of factors x , y and z will generally be the point at which:
  27. A market demand schedule is obtained by adding individual demand schedules:
  28. The market demand shedule is determined by:
  29. At low prices, demand is likely to be:
  30. In cournot model, firms sell: