An Increase in the Number of Producers of a Good

question 147

Multiple Choice

An increase in the number of producers of a good will

• A)increase the market supply because the price will rise
• B)increase the market supply only if market demand increases too
• C)increase the market supply because market supply is the sum of all individual supply curves
• D)increase the market supply only if all suppliers have an identical supply curves
• E)decrease the market supply because firms compete with each other and each firm will supply more

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Definitions:

Free Cash Flow

Cash generated by a business above that needed for asset replacement and growth.

Leveraged Buyout

The process of purchasing another firm primarily through the use of a substantial amount of debt financing, such as bonds or loans, to cover the acquisition expenses.

Collateralized

Secured by an asset or property, serving as protection for lenders in case the borrower fails to fulfill the repayment obligations.

Firm's Assets

Resources owned by a company that have economic value and can provide future benefits.