The exit of existing firms from a competitive market will
a. increase market supply and increase market prices.
b. increase market supply and decrease market prices.
c. decrease market supply and increase market prices.
d. decrease market supply and decrease market prices.
C
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When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of
A) a market mechanism. B) macroeconomics. C) opportunity cost. D) a fallacy of composition.
If a study shows that two goods have a high negative cross elasticity of demand value, then the two goods are competing in the same market.
Answer the following statement true (T) or false (F)
The Congress of Industrial Organization (CIO) was founded by
A) Samuel Gompers. B) Jimmy Hoffa. C) John L. Lewis. D) George Meany.
If aggregate demand had grown faster than it did from 2009 to 2010, then the U.S. economy would have experienced
a. higher unemployment and higher inflation. b. lower unemployment and lower inflation. c. higher unemployment and lower inflation. d. lower unemployment and higher inflation.