Purely Competitive Industry X Has Constant Costs and Its Product

question 52

Multiple Choice

Purely competitive industry X has constant costs and its product is an inferior good. The industry is currently in long-run equilibrium. The economy now goes into a recession and average incomes decline. The result will be

• A)an increase in output and in the price of the product.
• B)an increase in output, but not in the price of the product.
• C)a decrease in the output, but not in the price of the product.
• D)a decrease in output and in the price of the product.

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Definitions:

Cooking Food

The process of preparing food by combining, mixing, and heating ingredients, which can increase digestibility and reduce foodborne pathogens.

Caloric Gain

The increase in calories obtained and absorbed from food and beverages, contributing to energy resources or weight gain.

Foraging

The act of searching for and exploiting food resources by animals, including humans.

Dunbar

Refers to the Dunbar's number, a theoretical cognitive limit to the number of people with whom one can maintain stable social relationships.