Sheila sells corn in a perfectly competitive market. This month Sheila receives a lower price for a bushel of corn than she did last month. This might have happened because:
A. the market demand increased for corn.
B. the market demand decreased for corn.
C. firms exited the market.
D. Sheila's costs have increased.
Answer: B
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A. externalities. B. opportunity costs. C. free riders. D. negative incentives.
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a. horizontal b. vertical c. dependent on the particular industry d. downward sloping e. upward sloping
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