If Perfectly Competitive Firms Exit a Market, the

question 381

Multiple Choice

If perfectly competitive firms exit a market, the

• A) market supply curve shifts leftward.
• B) price of the good or service falls.
• C) profits of the remaining firms decrease.
• D) output of the industry increases.

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Definitions:

Private Corporation

A company owned by non-governmental organizations or a relatively small number of shareholders or company members which does not offer or trade its company stock (shares) to the general public.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing shareholders' ownership in the company.

Public Markets

Marketplaces, whether physical or electronic, that are accessible to the public for the buying and selling of securities, commodities, and other goods.

Stockholders' Equity

The owners' residual interest in a corporation's assets after deducting liabilities, often referred to as shareholder equity or owner's equity.