In imperfectly competitive markets, increasing production will decrease the price of all units sold. This concept is known as the
A)income effect.
B)cost effect.
C)output effect.
D)price effect.

Question

Quizplus · Accepted Answer

In imperfectly competitive markets, increasing production will decrease the price of all units sold because firms have some degree of market power and can influence the price of their products. This effect is known as the price effect.

In Imperfectly Competitive Markets, Increasing Production Will Decrease the Price