If an Industry Experiences an Increase in the Number of Firms,then

question 91

Multiple Choice

If an industry experiences an increase in the number of firms,then

• A) the original firms will produce more.
• B) the new firms will produce more than the original firms.
• C) the industry supply curve will shift left.
• D) the new firms will produce the same amount as the original firms.
• E) the industry supply curve will shift right.

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Definitions:

Semiannual Interest Payments

These are interest payments made twice a year on a financial instrument, such as a bond.

Coupon Rate

The annual interest rate paid by a bond's issuer to its bondholders, usually expressed as a percentage of the face value.

Face Value

The nominal or dollar value printed on a stock, bond, or other financial instrument, representing its legal value.

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, is to be paid back in full.