If Firms in a Competitive Industry Are Facing a Continual

question 91

Multiple Choice

If firms in a competitive industry are facing a continual decrease in demand for their product, in the long run

• A) existing firms will modernize plant and equipment in order to increase efficiency.
• B) capacity in the industry will gradually shrink as plant and equipment is not replaced.
• C) newer, more efficient firms will enter the industry and earn normal profits.
• D) existing firms will expand output as a means of recovering losses.
• E) firms will begin advertising in order to increase demand for their product.

Identify factors that contribute to cognitive and social development across different life stages.

Describe the impact of parenting styles and familial interactions on child development.

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Analyze the role of critical thinking in evaluating arguments and psychological claims.

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Definitions:

Net Sales

The net sales of a company, which are calculated by deducting returns, allowances for damaged or missing items, and discounts from total sales.

Credit Sale

A transaction where goods or services are provided to a customer with an agreement to pay at a later date.

Gross Profit

The difference between revenue and the cost of goods sold, representing the profit a company makes after deducting the costs associated with making and selling its products or services.

Sales Discounts

Reductions granted on the selling price of goods or services to encourage prompt payment by the customer.