When a monopolistically competitive firm lowers its price, one ...

[Garrulous]

When a monopolistically competitive firm lowers its price, one good thing happens to the firm. What is this one good thing called?
 
  A) the income effect B) the price effect
  C) the substitution effect D) the output effect

Question 2

Which of the following statements is false?
 
  A) In the short run: total cost = fixed cost + variable cost.
  B) Variable costs are costs that change as output changes.
  C) An explicit cost is a nonmonetary opportunity cost.
  D) In the long run there are no fixed costs.

[briseldagonzales]

Answer to Question 1

D

Answer to Question 2

C

[Garrulous]

Thanks for the timely response, appreciate it

[shewald78]

Wow, this really help