Three Firms Are Currently Producing and Selling in a Market

question 28

Multiple Choice

Three firms are currently producing and selling in a market.When one of the three firms exits the market,economists expect that the equilibrium price will ________ and the equilibrium quantity will ________.

• A) be lower; be lower
• B) be higher; be lower
• C) be lower; be higher
• D) be higher; be higher
• E) not change; not change

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Definitions:

Breach of Contract

occurs when one party in a contractual agreement fails to fulfill their obligations as outlined in the contract, allowing the other party to seek legal remedies.

Nuisance

An act, condition, or thing causing annoyance, inconvenience, or damage to individuals or the community, not necessarily illegal but may be regulated or restrained.

Qualified Privilege

A legal immunity granted under certain conditions, protecting individuals from liability for statements made without malice.

Innuendo

An implied statement that is detrimental to another.