-To Eliminate Losses in a Perfectly Competitive Market, Firms Exit

question 97

Multiple Choice

-To eliminate losses in a perfectly competitive market, firms exit the industry. This exit results in

• A) a decrease in market demand.
• B) a decrease in market supply.
• C) an increase in market demand.
• D) a decrease in BOTH the market supply and the market demand.
• E) an increase in market supply.

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Definitions:

Nonfinancial Asset

Assets that have value but are not monetary or financial in nature, such as property, equipment, or intellectual property.

Insurance Claims

Requests made to an insurance company for payment based on the terms of an insurance policy following a loss, damage, or occurrence of a covered event.

Quit Smoking

The act of stopping the habit of inhaling tobacco smoke, typically to improve health outcomes.

Reinforcement

In psychology, a process by which a stimulus increases the probability of the behavior that it follows.