Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 11 - Monopolistic Competition and Oligopoly - Quick Quiz for Figure 11.4 - Page 229: 2

Answer

a.) the firm's total revenue will fall if it increases its price above P0.

Work Step by Step

Going past the equilibrium point results in a larger price but a smaller quantity. Since the decrease in quantity outweighs the benefit of increasing the price, the firm will get less revenue as a result.
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