As Perfectly Competitive Firms Leave a Market Because They Are

question 458

Multiple Choice

As perfectly competitive firms leave a market because they are incurring an economic loss, the price of the good ________ and the economic loss of each remaining firm ________.

• A) rises; increases
• B) rises; decreases
• C) falls; increases
• D) falls; decreases

---

Definitions:

Disposal Sites

Locations designated for the disposal or treatment of waste materials.

Automatic Stay

A legal provision that halts actions by creditors to collect debts from a debtor who has declared bankruptcy, providing temporary relief.

Bankruptcy Proceeding

A legal process in which a person or business that is unable to repay their outstanding debts obtains relief from some or all of their debts.

Violating

The act of disregarding or not complying with a law, rule, agreement, or expectation.