When firms leave a perfectly competitive market, then, other things remaining unchanged:
a. the market supply will decrease but the market price will rise.
b. both the market supply and the market price will fall.
c. both the market demand and the price will increase.
d. the market demand will decrease but the market price will rise.
e. both the market demand and the market supply will decrease.
a
You might also like to view...
Is it possible to see gains in a nation's real standard of living without any positive economic growth?
A) No, a nation's standard of living cannot improve without economic growth. B) Yes, but only if the government prints more money so people feel rich. C) Yes, if workers can produce the same level of output in fewer work hours, so that more leisure time could push up the real standard of living. D) None of the above: Economic growth has nothing to do with a nation's standard of living.
Pleasure boaters enjoy the use of waterways, but sometimes run into problems and need rescue. Coast Guard boats, supported by tax revenue, are often used for rescue. Is it likely that there will be an efficient amount of boating and rescuing?
What will be an ideal response?
Income elasticity of demand for a good has been calculated as - 4.0, therefore the good is:
(a) A substitute good. (b) A necessity. (c) A complementary good. (d) An inferior good.
According to U.S. antitrust enforcement guidelines, a merger is likely to be challenged if
A. the industry after the merger has an HHI above 1,800 and the HHI rises by more than 100. B. the industry after the merger has an HHI above 1,000 and the HHI rises by more than 10. C. the industry after the merger has an HHI above 1,800 and the HHI falls by more than 100. D. the HHI decreases after the merger.