As the Demand for a Product Falls, It Is Not

question 30

Multiple Choice

As the demand for a product falls, it is not uncommon for the industry to become a monopoly.This is most likely due to

• A)an increase in the number of barriers.
• B)legal restrictions being imposed.
• C)the surviving firm operating on the declining part of its average cost curve.
• D)patent protection causing high prices.

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Definitions:

Net Income

The total earnings of a company after deducting all expenses and taxes from total revenue.

Drawings

Amounts withdrawn by the owner(s) of a business for personal use.

FASB

The Financial Accounting Standards Board (FASB) is a private organization that establishes financial accounting and reporting standards for companies and nonprofit organizations in the United States.

SEC

Stands for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and protecting investors.