a. In an ollgopoly, the price effect is: the Increase in price from lowering the quantity sold. the Increase in total revenue due to the money brought in by the sale of additional units. the Increase in output that comes from raising the price. the decrease in total revenue that occurs because the increase in quantity will push the market price down. b. In an oligopoly, the quantity effect is: the Increase in price from lowering the quantity sold. the decrease in total revenue that occurs because the increase in quantity will push the market price down. the increase in output that comes from raising the price. the increase in total revenue due to the money brought in by the sale of additional units. c. In an oligopoly, when the quantity effect outweighs the price effect: a decrease in output may increase the firm's profits. an increase in output may increase the firm's profits. keeping output constant and raising price will increase the firm's profits. keeping output constant and lowering price will increase the firm's profits. d. When a single firm in an oligopoly market decides to Increase output, that firm: feels the price effect, but other firms feel the quantity effect. feels the quantity effect, but other firms feel the price effect. feels both the quantity effect and price effect, but other firms only feel the price effect. feels the price effect, but other firms feel both the price and quantity effects.
a. In an ollgopoly, the price effect is: the Increase in price from lowering the quantity sold. the Increase in total revenue due to the money brought in by the sale of additional units. the Increase in output that comes from raising the price. the decrease in total revenue that occurs because the increase in quantity will push the market price down. b. In an oligopoly, the quantity effect is: the Increase in price from lowering the quantity sold. the decrease in total revenue that occurs because the increase in quantity will push the market price down. the increase in output that comes from raising the price. the increase in total revenue due to the money brought in by the sale of additional units. c. In an oligopoly, when the quantity effect outweighs the price effect: a decrease in output may increase the firm's profits. an increase in output may increase the firm's profits. keeping output constant and raising price will increase the firm's profits. keeping output constant and lowering price will increase the firm's profits. d. When a single firm in an oligopoly market decides to Increase output, that firm: feels the price effect, but other firms feel the quantity effect. feels the quantity effect, but other firms feel the price effect. feels both the quantity effect and price effect, but other firms only feel the price effect. feels the price effect, but other firms feel both the price and quantity effects.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:a. In an oilgopoly, the price effect is:
the Increase in price from lowering the quantity sold.
the increase in total revenue due to the money brought in by the sale of additional units.
the Increase in output that comes from raising the price.
the decrease in total revenue that occurs because the increase in quantity will push the market price down.
b. In an oligopoly, the quantity effect is:
the increase in price from lowering the quantity sold.
the decrease in total revenue that occurs because the increase in quantity will push the market price down.
the increase in output that comes from raising the price.
the increase in total revenue due to the money brought in by the sale of additional units.
c. In an oilgopoly, when the quantity effect outweighs the price effect:
a decrease in output may Increase the firm's profits.
an increase in output may increase the firm's profits.
keeping output constant and raising price will increase the firm's profits.
keeping output constant and lowering price will increase the firm's profits.
d. When a single firm in an oligopoly market decides to increase output, that firm:
feels the price effect, but other firms feel the quantity effect.
feels the quantity effect, but other firms feel the price effect.
feels both the quantity effect and price effect, but other firms only feel the price effect.
feels the price effect, but other firms feel both the price and quantity effects.
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