If There Is a Decrease in Demand for a Product

question 156

Multiple Choice

If there is a decrease in demand for a product in a purely competitive industry, it results in an industry contraction that will end when the product price is

• A)greater than its marginal cost.
• B)equal to its marginal cost.
• C)less than its marginal cost.
• D)greater than its average cost.

---

Definitions:

Logically

Pertains to clear, structured, and reasonable thinking or arguing based on established principles of validity.

Systematically

In a methodical and organized manner, following a fixed plan or system.

Cognitive Strategies

Techniques or approaches utilized in thinking or problem-solving to achieve specific goals.

Working Memory

A cognitive system that holds and manipulates information over short periods, crucial for reasoning, guidance of decision-making, and behavior.