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Steven Spielberg's classic movie Jaws was a thriller about agreat white shark that terrorized tourists at a local beach. Just before the shark's appearance, eerie music began playing. Asthe unseen shark came closer, the tempo of the music picked up. After the audience had experienced this a few times, thesound of the music triggered the emotional reaction of fear inthe audience even though the shark still had not appeared. Atthat point, the sound of the eerie music was a(n) :
Decreasing-Cost Industry
An industry in which expansion through the entry of firms lowers the prices that firms in the industry must pay for resources and therefore decreases their production costs.
Long-Run Supply Curve
As it applies to macroeconomics, a supply curve for which price, but not real output, changes when the demand curves shifts; a vertical supply curve that implies fully flexible prices.
Downsloping
Typically describes a graph line that shows a decrease in a variable as another variable increases, often used in economics to illustrate concepts like demand curves.
Profit-Maximizing
The technique a firm uses to ascertain the optimal pricing and production levels for achieving maximum profit.
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