Which of the Following Will Cause Equilibrium Output in a Market

question 21

Multiple Choice

Which of the following will cause equilibrium output in a market to increase?

• A) A decrease in firms' variable costs.
• B) An outward shift of the demand curve.
• C) Entry of more firms into the market.
• D) All of the above.

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Definitions:

Market Value

The present-day trading price for assets or services available in the open market.

Book Value

The net value of a company's assets as found on its balance sheet, which is often different from its market value.

Net Income Ratio

A financial metric that calculates how much net income is generated as a percentage of revenues, showcasing profit efficiency.

Revenue Account

An account that tracks the income earned by a business, from sales or other sources, during an accounting period.