If there is a decrease in industry supply while the industry demand curve remains the same, then an individual firm in a perfectly competitive industry currently earning losses will see its losses
A. increase.
B. decrease.
C. not change.
D. impossible to determine
Answer: B
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According to your text, when a surplus exists,
A) buyers compete with buyers. B) buyers compete with sellers. C) sellers compete with sellers. D) nobody has to compete because scarcity has been eliminated.
In the base year the price index
A) will be between 1 and 100. B) will always equal 100. C) equals 100 times the cost of the market basket in the base year. D) will equal the year.
As the Fed responded to the financial crisis that followed the collapse of the housing market, certain banks were deemed too:
A. large to fail, as their failure would carry the risk of causing a domino effect in the highly integrated financial system. B. large to stay afloat, as they would be too costly to save. C. small to fail, as they were easy to save. D. large to fail, and were consequently purchased by the government.
According to 2014 data on the U.S. population, which of the following was correct?
a. Adults of prime working age (ages 25-54) had both higher labor-force participation rates and higher rates of unemployment compared to teenagers. b. Adults of prime working age (ages 25-54) had higher labor-force participation rates and lower rates of unemployment compared to teenagers. c. Adults of prime working age (ages 25-54) had both lower labor-force participation rates and lower rates of unemployment compared to teenagers. d. Adults of prime working age (ages 25-54) had lower labor-force participation rates and higher rates of unemployment compared to teenagers.