When an Industry Supply Curve Increases Enough to Erase Economic

question 23

Multiple Choice

When an industry supply curve increases enough to erase economic profits,

• A)weaker firms exit the industry
• B)quantity demanded decreases, but only slightly
• C)all firms in the industry incur economic losses
• D)entry of new firms and expansion of existing firms stop
• E)marginal revenue increases

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Definitions:

Amino Acids

Amino acids are organic compounds that serve as the building blocks of proteins, necessary for the synthesis of hormones, neurotransmitters, and enzymes among other functions.

Carbon Atoms

Carbon atoms are the chemical basis of all known life, capable of forming stable bonds with many elements including themselves, thus serving as the backbone of organic molecules.

Cellular Process

Cellular processes refer to the diverse range of activities or functions that occur within living cells, including cell division, metabolism, and communication.

Carbon Dioxide

This is an odor-free, color-free gas emitted by the burning of organic compounds and carbon, along with being a byproduct of respiration, and is subsequently absorbed by plants in the photosynthesis process.