If Competitive Industry Z Is Making Substantial Economic Profit, Output

question 185

Multiple Choice

If competitive industry Z is making substantial economic profit, output will

• A)fall in industry Z and firms will likely leave the market.
• B)fall in all industries except industry Z.
• C)expand in industry Z, as more resources will move to that industry.
• D)expand in industry Z, but no new firms will enter the market.

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Definitions:

Toll Road

A public or private roadway for which a fee is charged to use, typically used to fund maintenance and new infrastructure.

Produce Revenue

The process of generating income from business activities.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, used to finance the national debt.

Minimum Denomination

The smallest value of a security or financial instrument that can be purchased or traded.