Suppose a Firm in a Competitive Market Reduces Its Output

question 352

Multiple Choice

Suppose a firm in a competitive market reduces its output by 20 percent. As a result, the price of its output is likely to

• A)increase.
• B)remain unchanged.
• C)decrease by less than 20 percent.
• D)decrease by more than 20 percent.

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Definitions:

Processes

The series of actions, changes, or functions that bring about a result or are involved in the way natural phenomena occur.

Sedimentary Rocks

Rocks formed by the accumulation and compression of sediment, which may include minerals, organic matter, and fragments of other rocks.

Exposed Surface

An area where materials such as rock, soil, or sediment are not covered by vegetation or man-made structures and are visible.

Igneous Rocks

Rocks formed by the cooling and solidification of magma or lava, characterized by a crystalline texture.