The Textile Industry Is Composed of a Large Number of Small

question 256

Multiple Choice

The textile industry is composed of a large number of small firms. In recent years, these firms have suffered economic losses, and many sellers have left the industry. Economic theory suggests that these conditions will

• A)shift the demand curve outward so that price will rise to the level of production cost.
• B)cause the remaining firms to collude so that they can produce more efficiently.
• C)cause the market supply to decline and the price of textiles to rise.
• D)cause firms in the textile industry to suffer long-run economic losses.

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Definitions:

Nonverbal Signals

Nonverbal signals are forms of communication without words, such as body language, gestures, facial expressions, and tone of voice, which convey feelings or intentions.

Acceptance

The act of receiving or consenting to something offered or proposed.

Caution Signals

Indicators or signs, either verbal or non-verbal, that suggest potential issues, objections, or resistance in a sales context.

Blocked Communication

A situation where communication is hindered or made ineffective due to barriers such as language, cultural differences, or interpersonal conflicts.